SEAT, Iberdrola join forces in Barcelona EV battery manufacturing bid

Spain's largest automaker SEAT could start building electric vehicle battery cells and modules at its Martorell production site as part of plans to transform the site, the Volkswagen-owned company announced March 5.

An EV battery manufacturing center would be the first in Spain, which is Europe's second largest automaker.

The early-stage plan involves participation of Spain's largest renewable generator, Iberdrola, and could be partly financed by Next Generation EU funds, for which it has applied, Iberdrola said.

It also has the backing of the government, which has included the drive towards the EV in its strategic recovery plans. Industry Minister Reyes Maroto said March 4 that the government would create a public-private partnership with SEAT and Iberdrola to make the battery plant a reality.

"The project will allow the development of a coordinated action to ensure Spain has the infrastructure, sites and required mechanisms to independently manufacture a fully connected and competitive electric vehicle," Maroto told a union congress.

SEAT has previously announced plans to invest Eur5 billion ($5.9 billion) in the electrification of transport, while the government has set aside around Eur500 million in incentives for individuals planning to buy an EV.