Industry grants Stellantis a quarter of the aid it requested to build a battery gigafactory
Stellantis, the automotive group which brings together brands such as the French Peugeot, Citroën, DS, Opel and Vauxhall; the Italians Fiat, Alfa Romeo, Stellantis, the automotive group which brings together brands such as the French Peugeot, Citroën, DS, Opel and Vauxhall, the Italians Fiat, Alfa Romeo, Lancia, Maserati and Abarth; or the American companies Jeep, Chrysler, Dodge and RAM, have received subsidies from the PERTE of the Electric and Connected Vehicle (VEC 2). Stellantis has received 63.82 million euros for four projects linked to batteries, two in Figueruelas, one in Madrid and another for Vigo, and the most important project is the gigafactory in Zaragoza, named Antares. The other two projects will be used for improvements and installation of a battery assembly line in the Madrid and Vigo plants. The final decision on the installation of the Stellants gigaf factory should be known before the end of the year.
Published : 2 years ago by WEB DESK in Auto
Stellantis, the automotive group which brings together brands such as the French Peugeot, Citroën, DS, Opel and Vauxhall; the Italians Fiat, Alfa Romeo, Lancia, Maserati and Abarth; or the American companies Jeep, Chrysler, Dodge and RAM, announced yesterday that it will present allegations to the Ministry of Industry regarding the result of the new aid from the PERTE of the Electric and Connected Vehicle (VEC 2), linked to European funds. The vehicle manufacturer has only received a quarter of the subsidies requested to build a battery gigafactory for electric cars at its Figueruelas plant, in Zaragoza.
Yesterday, Stellantis received the Ministry of Industry’s decision on aid with coldness and some surprise. According to the subsidy resolution published yesterday by the department headed by Minister Héctor Gómez, the group, which has factories in Vigo, Zaragoza and Madrid in Spain, will receive 63.82 million euros from this new line of aid from PERTE VEC 2 , which represents less than a quarter of the more than 319.5 million euros that it had requested in total for the four industrial projects presented.
Yesterday, Industry made public the provisional resolution of the second call for PERTE VEC 2 subsidies for seven projects. Stellantis would receive 63.82 million euros for four projects linked to batteries, two in Figueruelas, one in Madrid and another for Vigo. But the most important project is the gigafactory in Zaragoza, named Antares, which has only received aid for 53.39 million euros out of a bankable budget of 266.9 million euros. The investment linked to this new gigafactory will exceed 3,000 million euros, according to sector sources. The rest of the aid that the automobile alliance, which manufactures the Opel Corsa in Figueruelas or the Peugeot 2008 in Vigo among others, will receive in Spain, will be used for improvements and installation of a battery assembly line in the Madrid and Vigo plants.
The company is determined to present allegations to the Ministry of Industry for the aid resolution. Considers the subsidies insufficient given the size and importance of the project presented and compares them with those they have received other groups for similar projectss, such as the more than 200 million euros that the Government granted to Volkswagen to install the gigafactory in Sagunto (Valencia), with an associated investment of almost 4,000 million euros. Once Stellantis presents the relevant resources, the ministry will have three weeks to resolve them. So the final decision on the installation of the Stellantis gigafactory should be known before the end of the year.
The project to build a large gigafactory in southern Europe, of more than 40 gigawatts, is strategic for the Italian-French-American group. One of the main options is to build the electric battery factory next to its factory in Figueruelas (Zaragoza) with an associated investment of close to 3,000 million euros. But the conglomerate chaired by the Portuguese Carlos Tavares has yet to decide the final location of this battery plant. As happens in these processes, its location will depend, among other things, on the volume of public aid that the group can obtain. Although Figueruelas has great possibilities due to its location and because the group is the main producer of vehicles in the Iberian Peninsula, several countries are competing for this industrial project and a type of auction is being organized to attract the battery factory, as happened previously with the Volkswagen gigafactory in Sagunto or the project to install a Tesla factory in the Valencian Community.
The installation of the gigafactory in Figueruelas would also be linked to the awarding of the assembly platform STLA Small, for small electric vehicles and which would be endowed with around 560 million for which they are eligible for around 100 million in public aid. The Peugeot e-208 and the electric Lancia Ypsilon will be manufactured at the Zaragoza factory starting in 2025.
In addition to the aid to Stellantis, the Ministry of Industry has also published three new subsidies for three other companies. Mobis Automotive Solutions, owned by Hyundai, will receive 9.57 million euros for investment in a new battery production plant in Noáin (Navarra) that will supply future Volkswagen Navarra vehicles. Fragnor will obtain 867,000 euros for a lithium and cobalt recovery project from battery recycling. And Lithium Iberia will receive 13.3 million euros for a process plant for the manufacture of lithium hydroxide in Cáceres.
Minister Héctor Gómez yesterday highlighted the “extraordinary proactivity and collaboration” of the automotive sector in Spain, which he assured is demonstrating “through its projects its willingness to turn Spain into a hub for European mobility.”
While Stellantis awaits the final resolution of the Ministry of Industry to its allegations, the group announced yesterday the alliance with Samsung to invest 3.2 billion dollars in its second gigafactory of batteries for electric cars in the United States. The French-Italian-American automaker and the South Korean technology giant are already building a first battery factory in Kokomo, Indiana, with an estimated investment of $3.1 billion.
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Topics: Markets, Tesla