Europe grants 837 million to Spain for the production of batteries

by time news

2023-05-11 13:41:27

The European Commission has approved granting Spain a total of 837 million euros in aid to support the production of batteries for electric and connected vehicles in order to promote the transition to a net zero emission economy.

These subsidies are in line with the Industrial Plan of the Green Pact, which seeks to promote competition in the European Union in the production of ‘clean’ industries.

Companies that produce batteries, their essential components and the necessary raw materials may benefit from these subsidies with a maximum amount of aid per beneficiary of between 100 and 300 million euros for investments in the field of batteries, depending on whether performed in an assisted area or not; not exceeding 100 million euros for investments in essential components, and not exceeding 25 million euros for investments in raw materials.

The Commission has concluded that this Spanish regime is necessary, adequate and proportionate to accelerate the ecological transition and facilitate the development of certain economic activities and considers that it complies with the conditions established in the Temporary Crisis and Transition Framework, since the aid will encourage the production of equipment relevant to the transition to a net zero emissions economy and will be granted no later than December 31, 2025.

Spain, at the tail in electrification

In the last year, Spain has barely achieved an improvement of 3 points in the barometer, far from the European average that grows up to 7 points, according to the Association of Manufacturers ANFAC. In the year 2022, the penetration indicator of the electrified vehicle achieves an average assessment of 23.2 points, which represents a growth of 3.6 points. With this score, Spain is positioned in the penultimate place in the ranking of the Electromobility Barometer. The European average achieves an increase of 7.4 points, double that of Spain, standing at a total of 51.2 points out of 100. The indicator reflects the uneven pace that countries such as Germany, Norway or the Netherlands are obtaining with growths of above 10 points and leading the European ranking.

Spain is far from securing the electricity market. Currently there are around 180,000 electric vehicles accounted for. The 2030 agenda requires 5 million electric vehicles between cars, vans, buses and motorcycles; of which, about 3 million will be passenger cars.

Registrations of electrified vehicles (100% electric + plug-in hybrids) of all types (cars, two wheels, commercial and industrial) rose 21.8% in April, reaching 9,661 units, according to data from the Business Association for Development and Promotion of Electric Mobility (AEDIVE) and the National Association of Vehicle Dealers (Ganvam). So far this year they have accumulated an increase of 31.7%, up to 40,951 units.

According to the data collected in the “Yearbook of Electric Mobility 2022-2023 AEDIVE”, the year 2022 closed with 21,573 operating public charging points in Spanish territory, of which 65% are with a power of 22 kW and up and of these , 30% are fast and with high power up to 400 kW, which contradicts the opinions that indicate that the majority of charging points in Spain are low power.

The Yearbook highlights that in 2022 alone, 8,200 new charging points were installed, representing 38% of the public IRVEs operating in Spain. In addition, another 7,400 public IRVEs were installed that could not start up and that, if they had not had the existing problems in our country regarding the granting of licenses and permits by public administrations and management with distribution companies, they would have increased that percentage to 54%.

One of the most prominent sectors in the report is that of the national manufacturers of charging points, a flourishing industry that had a turnover of 300 million euros in 2022 and exported 87% of its production.

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