Spanish president Pedro Sánchez,announced on Monday that his government would commit €4.3 billion ($A6.81 billion) towards kick-starting the production of electric vehicles and batteries in Spain.
The government’s Strategic Project for the Recovery and Economic Transformation (PERTE) of Electric and Connected Vehicles is expected to attract total investment between 2021 and 2023 of more than €24 billion ($A38 billion) – made up of €4.3 of public sector funds and €19.7 billion in private investment.
Billed as turning Spain “into the European hub for electromobility” – the new Strategic Project will serve as one of Spain’s main industrial transformation projects as it exits the COVID-19 pandemic, helping not only to boost the country’s recovery but also set it on a path towards the future.
“Our priority is Economic, Social and Territorial Recovery,” said the Prime Minister. “And to achieve a vigorous recovery we cannot be satisfied with returning to the point prior to COVID, but we must transform our economy.
“This is the task, the main objective, of the new government in this new stage: Economic, Social and Territorial Recovery.”
Already the second largest vehicle manufacturer in Europe, behind Germany, and the ninth largest in the world, Spain’s vehicle manufacturing sector represents 11% of Spain’s total industrial turnover, and is the fourth largest export sector in the country, representing 15% of total Spanish exports.
“With this investment to boost electric vehicles, we believe that the sector can increase its weight in GDP by up to 15% by 2030,”up from around the current 10%, said Sánchez.
He hopes the new stimulus package will help create as much as 140,000 new jobs, which itself is hoped to boost Spain’s economy by 1% to 1.7%.
The new Strategic Project is also aiming at registering 250,000 new electric vehicles by 2024, and deploying between 80,000 and 110,000 charging points.
“In this area I would like to point out that Spain is the first country in which an Academy for Batteries is to be set up,” Sánchez added.
“This initiative will enable the training of some 150,000 people in the coming years in the different areas related to the development and manufacture of batteries for electric cars.”