The new EU funding is aimed at strengthening electric vehicle supply chain capacity and supporting Europe’s transition to a net-zero economy.
The European Commission has approved a €200 million state aid program for Spain aimed at strengthening manufacturing capacity across the EV value chain, including batteries, hydrogen technology and key raw materials used in electric vehicles.
The funding scheme, approved under the EU’s Clean Industry Trade National Assistance Framework (CISAF), provides direct subsidies to companies investing in production facilities related to the electric mobility ecosystem. Spanish authorities can grant aid until June 30, 2026.
The measure aims to accelerate the development of key industrial capabilities needed to support the expansion of electric vehicles, while advancing Europe’s broader climate change and industrial policy objectives.
Teresa Rivera, Executive Vice President, Clean, Fair and Competitive Transition, commented on the investment: “Spain’s new €200 million plan will accelerate production of batteries and energy storage for electric vehicles, as well as hydrogen technology.”
“This measure strengthens Europe’s clean industrial transition while securing strategic supply chains through direct subsidies. Amid growing geopolitical uncertainty, increasing Europe’s energy autonomy and reducing dependence on imported fossil fuels is more important than ever.”
“Investing in batteries, storage and hydrogen is not just about competitiveness, but also resilience and sovereignty. Funding will be deployed quickly to enable the battery industry to progress this transition.”
Focused investment in EV value chain technology
The approved program targets strategic investments that improve industrial capabilities across several segments of the EV value chain.
Funding will support projects related to:
Manufacture of battery technology and energy storage systems Hydrogen technology used in electric vehicles Manufacture of essential components used in these technologies Processing or recovery of critical raw materials, including secondary materials
By covering multiple production stages, the plan aims to strengthen the supply chain supporting Europe’s growing electric mobility sector.
Spanish authorities said the subsidy is available to companies operating anywhere in the country, and both established manufacturers and emerging technology companies can apply.
Cooperation with the EU Clean Industry Agreement
The European Commission evaluated the program CISAF, introduced in June 2025, to guide state aid in supporting sectors that are central to Europe’s decarbonization strategy.
Under this framework, governments can provide targeted aid to industries that contribute to the transition to climate neutrality, as long as the support is balanced and does not distort competition within the EU single market.
After considering Spain’s proposal, the European Commission concluded that the measure meets these criteria.
Officials have determined that this support is necessary to facilitate investment in strategic manufacturing capabilities and support economic activity essential to the EU’s transition to a net-zero economy.
This authorization was granted under Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows State aid for the purpose of promoting the development of certain economic activities.
Strengthening the European electric mobility supply chain
The decision reflects increased efforts by European policymakers to strengthen domestic industrial capacity along the EV value chain.
Demand for electric vehicles is rapidly increasing across the region, creating pressure to secure supply chains for batteries, energy storage systems, and key materials.
By supporting projects that expand manufacturing and material recovery within Spain, the EU wants to reduce dependence on external suppliers and support the development of a more resilient electric mobility ecosystem.
Spain’s plan represents one of several national initiatives expected to emerge under the framework of the Clean Industries Agreement, as EU countries compete to attract investment in next-generation vehicle and energy technologies.
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