Spanish Government to Invest 5.84 Trillion Won in Electric Vehicle Industry

Pedro Sanchez, Prime Minister of Spain
Photo by AP Yonhap News

[Asia Economy Reporter Park Byung-hee] The Spanish government announced plans to invest 4.3 billion euros (approximately 5.843 trillion KRW) in the electric vehicle industry, according to an AP report on the 12th (local time).

Pedro Sanchez, Prime Minister of Spain, described the electric vehicle investment plan announced that day as a true revolution for the Spanish economy. The Spanish government plans to secure investment funds from the European Union (EU) Recovery Fund. The Recovery Fund is a fund established by the EU to support member countries severely affected by COVID-19, with a total fund size reaching 750 billion euros.

The Spanish government expects to receive 140 billion euros from the Recovery Fund over the next six years. Based on this, it plans to prepare seven plans for the transformation of the Spanish industrial sector, with the electric vehicle investment plan being the first.

The Spanish government expects that its investment in electric vehicles will induce private investments worth 19 billion euros.

Through this investment, the Spanish government plans to increase the share of the electric vehicle industry in Spain’s gross domestic product (GDP) from the current 10% to 15% by 2030. It also aims to create 2 million new jobs.

Prime Minister Sanchez stated that positive effects are expected not only in the automobile industry but also in the mining, telecommunications, and power industries.

The Spanish cabinet is expected to approve the electric vehicle investment plan on the 13th. Companies will be able to apply for government support immediately, and the government expects to deliver the first subsidies to companies in September.

Spain is the second largest automobile producer in Europe after Germany and ranks eighth in the world.

This content was produced with the assistance of AI translation services.