EU go-ahead for Spain’s €837m battery aid scheme

EU go-ahead for Spain’s €837m battery aid scheme

EU go-ahead for Spain’s €837m battery aid scheme 526 407 Energy Storage Journal

May 19, 2023: The European Commission said on May 11 it had approved an €837 million ($909 million) Spanish aid scheme to finance battery production.

Under the scheme, companies producing batteries and related essential components and raw materials will be able to apply for grants and loans.

The aid package was approved under the EU’s state aid temporary crisis and transition framework, designed to incentivize the production of equipment for the transition towards a net-zero economy.

The maximum aid amount per beneficiary will range between €100 million and €300 million for investment in the field of batteries.

European Commission executive vice president in charge of competition policy, Margrethe Vestager (pictured), said the Spanish scheme “is an important step in the transition to a net zero economy, while protecting the level playing field in the single market”.

Analysis published on March 6, by clean transport campaign group Transport & Environment, said a green industrial policy focused on batteries with EU-wide support for scaling up production was urgently needed to counter incentives and subsidies for the industry in the US and China.

VW batteries subsidiary PowerCo said on March 17 it had given the go-ahead to build its second battery cells factory in the Spanish region of Valencia.

The factory will start producing unified cells for VW electric vehicles in 2026 and will have an initial annual production capacity of 40GWh.

Photo: Aurore Martignoni /EC – Audiovisual Service