The Spanish government will offer more European funds than initially planned to investors in the first phase of support of electric mobility projects, ranging from vehicle batteries to cars, and said it sought to work with Volkswagen Group after the German automaker reportedly threatened to pull out.
The Industry Ministry said that the subsidies to be disbursed this year under the so-called PERTE scheme using EU pandemic relief funds would rise to 877 million euros ($860 million) from 600 million euros, meaning the total planned amount of nearly 3 billion will be slightly more front-loaded.
The rest of the money remains to be awarded in the second phase next year.
“Right now, all the projects have guarantees that they can be developed according to the needs outlined by the companies,” Industry minister Reyes Maroto said. The amount that VW and others will receive will be defined next week, her ministry added.
VW Group, its Spanish unit Seat, and 60 associated companies want to mobilize 10 billion euros to electrify the automotive industry in Spain and turn the country into a hub for electric mobility in Europe, producing electric cars and batteries.
VW plans to build a new range of battery-electric small cars for its VW, Skoda and Cupra brands in Spain and open a battery plant near Valencia.
Other projects vying for the funds focus mainly on batteries.
Amer Malas 
Hani Joudi 
