According to the prime minister, the government is preparing to make a large investment in electric cars in Spain, which would be a “true revolution” for the country’s economy given the amount of additional investment it could attract.
Spain, according to the prime minister, will invest 4.3 billion euros ($5.1 billion) from its share of European epidemic recovery funds to overhaul its automobile industry and steer it toward manufacturing electric vehicles and their components.
The investment, as per Pedro Sánchez, will be a “true revolution” for the Spanish economy, attracting an additional 19 billion euros ($22.5 billion) in private investment.
The prime minister stated that the funds would be invested in all aspects of the vehicle manufacturing chain, from lithium extraction to electric battery cell assembly plants.
“The spontaneous functioning of the market will not enable the kickstarting of a new model that incorporates so many industries by itself,” he indicated.
Sanchez was speaking at an event to unveil the first of seven plans to transform Spain’s industries with the 140 billion euros ($166 billion) in EU Next Generation funds that the country will receive over the next six years.
“Our state must be an entrepreneurial state, working closely with the major stakeholders,” he continued, revealing that the government will appoint an industry leader to lead the joint private-public initiative.
In its weekly meeting on Tuesday, the Spanish Cabinet is expected to accept the automotive proposal. Companies will be able to apply for money immediately following the announcement, with the first disbursements due in September.
The plan intends to expand the industry’s portion of Spain’s gross domestic product from 10% to 15% by 2030, while also creating new jobs for the country’s 2 million workers. It will affect companies other than automakers and their suppliers, such as mining, telecommunications, and power utilities, according to Sánchez.
The prime minister also said that the country will invest one billion euros to boost electric vehicle sales, with another billion euros going toward the installation of new public electric plug-in sites, of which the country currently has only a few.
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