EU approves €837 million Spanish State aid scheme for electric vehicle battery production to support net-zero transition.

The European Commission has approved a €837 million Spanish scheme to support the production of batteries for electric and connected vehicles in line with the Green Deal Industrial Plan. The aid will be partially funded through the Recovery and Resilience Facility (RRF) and will take the form of direct grants and loans. The measure will be open to companies producing batteries, their essential components, and related raw materials. The maximum aid amount per beneficiary will range between €100 million and €300 million for investment in batteries, depending on whether it takes place in an assisted area or not. The aid is to be granted no later than 31 December 2025. The Commission approved the aid measure under EU State aid rules, finding it necessary, appropriate, and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework.