Extended deadline for EV battery production support in Spain
Locations
From July 17 to September 15, 2023, applications for aid for electric vehicle battery production projects can be submitted. This opportunity is in accordance with Order ICT/736/2023 and Order ICT/791/2023, issued by the Ministry of Industry, Trade, and Tourism (referred to as 'MINCOTUR'). The total aid available is EUR 837 million, making it the second aid program under the Strategic Projects for the Recovery and Economic Transformation of the Electric Vehicle ('PERTE VEC 2'). Financial support may come in the form of a grant, repayable loan, or a combination of both.
Here are some key points to note:
1. Maximum amounts per company are as follows:
a) In general, the aid intensity cannot exceed 15% of eligible costs, with a maximum aid amount of EUR 150 million.
b) If the project is conducted in 'areas c' of the Regional Aid Map 2022-2027, the aid intensity may increase to 20% of eligible costs, with a maximum aid amount of EUR 200 million (or EUR 180 million in case of a grant).
c) If the project is carried out in 'areas a' of the Regional Aid Map 2022-2027, the aid intensity may increase to 35% of eligible costs, with a maximum aid amount of EUR 300 million (or EUR 200 million in case of a grant).
2. If a repayable loan is chosen as the form of aid, it will have the following characteristics:
- Repayment term: 10 years, with a grace period of 3 years.
- Interest rate: 2.88%.
- Amortization: Principal repayment instalments will be annual and of equal amount, starting after the grace period.
3. Requirements to apply for aid and resolution:
Aid will be allocated on a first-come, first-served basis until the total budget of EUR 837 million is exhausted. To qualify as a beneficiary, certain requirements must be met, which include submitting responsible statements to demonstrate compliance. It's important to note that large companies involved in innovation projects related to organisation or processes must effectively collaborate with SMEs, ensuring that the latter receive a minimum of 30% of the total eligible costs. Additionally, documentation such as a project description and a guarantee related to the financial qualification of the applicant entity must be provided.
To become a beneficiary, it is crucial to submit all the required documentation as soon as possible after verifying compliance with the requirements.