The battery industry in Spain is in a phase of consolidation and growth, driven by investments exceeding 7 billion euros in gigafactories and recycling projects.
In this context, the country faces significant challenges from European leaders such as Germany and France, as well as global competition dominated by China.
Lluís Trilla, Senior Researcher at the Institute for Energy Research of Catalonia (IREC), tells Mobility Portal España: “There is interest, but at the moment what is lacking is infrastructure. There are few companies dedicated to this.”
National plans include hosting projects such as the PowerCo gigafactories in Valencia, Basquevolt in Álava, Envision in Extremadura and Stellantis in Zaragoza, among others.
The Volkswagen plant will create 3,000 direct jobs, while Basquevolt will produce solid-state batteries with an investment of 700 million euros.
“PowerCo represents a significant investment, but compared to other countries, financing in this area remains limited,” says Trilla.
It is worth noting that the national territory is projected to be the sixth country with the greatest cell production capacity in Europe by 2030, with an estimate of between 42 and 72 GWh.
What is the challenge?
According to Francisco Carranza, CEO of Basquevolt, the market is controlled by China.
The Asian country dominates the battery industry with a share of more than 70% of global production.
This is thanks to industrial policies that have fostered the development of the supply chain for decades.
“In Europe we cannot compete on costs. Our option is to differentiate ourselves through technology, innovating and developing more efficient solutions,” he emphasizes.
This approach could be key for Spain to maintain its competitiveness in a sector where price and efficiency are decisive.
This strategy is supported by the European Union, which seeks to reduce its dependence on the Asian market by strengthening its local supply chain.
In this context, Spain has a unique opportunity to capitalise on its position as the continent’s second-largest automobile producer.
However, a recurring obstacle to the development of this industry in Spain is the lack of regulatory clarity.
Although the PERTE for the Electric and Connected Vehicle (VEC) has been a positive incentive, companies highlight that the procedures to access these aids are complex and not very agile.
The interest of companies such as Tesla in setting up a plant in Valencia is a sign of confidence in the country’s potential, but attracting long-term investment requires stability and simpler regulatory frameworks.
“If a clear framework is not created to facilitate investments, we run the risk of them going to other countries,” Felipe Hernández, Chief Innovation Officer of FRV, told local media.
Circular economy: The next big step in batteries?
Battery recycling is another emerging segment with great potential in the national territory.
Companies such as Novolitio and BeePlanet Factory lead reuse initiatives, while projects such as TERA Batteries in Alicante aim to consolidate the infrastructure for recycling.
The development of second-life cells and innovation in materials could be key differentiators.
Industry sources told Mobility Portal that it is important for Spain to take advantage of its position as a global automobile producer.
“If electric vehicles are manufactured here, batteries should also be produced locally,” they say, stressing the need to invest in infrastructure and sustainability to maintain leadership.
This shows that, although the country is in a privileged position, it must act quickly to avoid being left behind in a sector that is advancing by leaps and bounds throughout the world.
To make the most of this opportunity, it will be crucial for public policies and private investments to work in synergy.
In this context, Francisco Carranza adds: “We must innovate to offer intrinsically superior technology and differentiate ourselves from a mature market dominated by commodities.”
