Spain's Industry Minister expects 'good news' on Stellantis' battery plant

Spain's Industry Minister expects 'good news' on Stellantis' battery plant

Spain's Industry Minister Jordi Hereu said on Monday he hopes to have "good news" regarding Stellantis' plan to build a battery factory in the country.

"We have to put out the new aid (packages) and I expect we will have relatively good news," Hereu told Reuters on the sidelines of an event in Barcelona when asked whether he felt confident Stellantis' project would be eventually confirmed.

The government is due to open a bidding process in which companies will compete to get grants and loans for specific projects.

"I believe it is reasonable to think that, I hope, it will go well," he said.

Stellantis' Chief Executive Carlos Tavares said in January the carmaker intends to build a battery factory in Spain if it obtains government subsidies.

Spain last year granted 59 million euros ($63.4 million) to Stellantis' battery plant project near the northeastern city of Zaragoza as part of government's aid programme to foster the electric vehicle and battery industry with European Union's pandemic relief funds.

Hereu, who met with Stellantis' executives in December, said last week that a third round of aid, which includes 200 million euros in grants and 100 million euros in loans will be launched in the first quarter and a fourth round worth 1.25 billion euros will be launched in the second half of this year.