By Joan Faus

BARCELONA (Reuters) – The Spanish regional authorities of Catalonia has supplied Volkswagen (DE:)’s SEAT the selection of at the very least two potential websites for an enormous battery plant the carmaker plans to construct in Spain, two sources advised Reuters.

Neighbouring Aragon has additionally proposed a potential website for the plant, one of many sources mentioned, as a number of Spanish areas compete for a slice of 4.3 billion euros ($4.96 billion) earmarked by the Spanish central authorities to advertise electrical automobile manufacturing and construct the nation’s first battery plant for vehicles. The funds will principally come from EU pandemic aid funds.

A Volkswagen spokesperson mentioned the method to pick a website is at the moment underway and has not been accomplished, noting that the “technological, logistical and financial necessities for the localization of a battery cell manufacturing unit are very excessive”.

Spain is Europe’s second-largest carmaker, after Germany.

SEAT’s predominant automobile manufacturing unit is close to Catalonia’s regional capital Barcelona, the place it has mentioned it may begin manufacturing electrical automobiles (EV) in 2025.

The Barcelona-area additionally hosts Nissan (OTC:) crops however they’re scheduled to shut in December, whereas Stellantis has manufacturing operations in Aragon.

Volkswagen needs to construct six European battery factories by the top of the last decade. It mentioned in July it might make its “greatest efforts” to construct one in Spain however has mentioned that may rely upon help from the federal government in Madrid and entry to public funds.

The Catalan authorities has supplied SEAT a big tract of publicly-owned land across the metropolis of Lleida, the 2 sources mentioned. One mentioned the federal government had additionally supplied land within the coastal metropolis of Tarragona. Each websites are nicely linked by street and prepare, and cheaper than privately-owned land.

SEAT has additionally been supplied a website within the Huesca space, within the Aragon area, one supply mentioned.

Any of those potential places could be alongside transport routes connecting SEAT’s Barcelona plant with VW’s automobile plant within the Navarra area, which might be helpful if each factories ultimately want batteries to supply EVs.

“We’re working to draw new investments looking for to re-industrialize (the area) with future added-value tasks,” Catalonia’s authorities trade director Natalia Mas mentioned in an emailed assertion.

An Aragon authorities supply mentioned the area has advised Spain’s trade minister about its capability to host a battery plant.

SEAT, which has remained silent on potential places for the battery plant, declined to remark.

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