The Future of Mobility: Spain’s Green Transition and the PERTE VEC Initiative
2035 marks a significant milestone in Europe as it aims to cease the sale of new gasoline and diesel vehicles. The European Union (EU) is implementing this strategy to meet its decarbonization goals . Despite some opposition, EU authorities strongly believe that eliminating internal combustion engines and minimizing emissions from existing vehicles is vital for achieving a sustainable future. Spain is aligning itself with this initiative and has recently committed an additional 400 million euros to the PERTE VEC project.
The automotive landscape is swiftly transitioning towards electric mobility, and Spain is at the forefront. The Strategic Project for the Recovery and Economic Transformation of the Electric and Connected Vehicle , or PERTE VEC, is a key initiative approved in July 2021. Its goal is to create a nurturing ecosystem in Spain for the development and manufacturing of electric vehicles.
The PERTE VEC program is a substantial investment, totalling over 24,000 million euros, with more than 4,000 million euros derived from public funding and the balance from private investments. This initiative aims to position Spain as an attractive location for automobile companies to conduct vehicle development and manufacturing processes. The focus is not solely on production; it encompasses innovation and research in essential areas, such as batteries and related technologies for electric vehicles.
To support the green transition of the automobile industry, the Ministry of Industry and Tourism has just launched the fourth call for the PERTE VEC. This call introduces an additional 400 million euros aimed at enhancing the value chain within the electric vehicle industry. The distribution of these funds includes:
- 250 million euros provided as repayable loans at a fixed interest rate of 2.8% with a duration of 10 years.
- 150 million euros offered as direct subsidies.
Companies interested in securing these funds can apply from October 14, 2025, to October 24. The 400 million euros allocated in this round is part of a larger budget of 1,250 million euros under PERTE VEC IV, which will be released in multiple phases. Importantly, these funds are designed specifically for companies and are not consumer-focused like the MOVES III program.
However, it is essential to note that public sector companies are not eligible for these funds. Beneficiaries must demonstrate an ability to successfully execute their projects, which means any legal entity in Spain involved in electric vehicle development can apply. This range of eligibility extends beyond major automobile manufacturers to include businesses focused on battery production, electrical components , charging systems, and even software development.
Notably, Chinese companies can also take part in this initiative, provided they meet the required criteria. Recognizing the growing importance of electric vehicle technology, China has been proactive in its efforts to support decarbonization. The aim of such measures is to establish value chains within Spain, encouraging companies to manufacture vehicles locally instead of solely relying on importing completed units from abroad or assembling them within Europe. A significant example of this inclusivity was the formal invitation extended by the Ministry of Industry to the Chery company, encouraging its participation in the PERTE VEC initiative.
As Spain embraces this transformative period in the automotive industry, it lays the groundwork for a more sustainable future. This commitment to electric vehicles, alongside the support for innovation and industry development, positions Spain as a crucial player in Europe’s transition towards greener mobility solutions. The landscape is broadening not just for traditional manufacturers but also for new players in the field, including those from countries like China. Spain’s focus on fostering a robust ecosystem for electric vehicle manufacturing is a noteworthy strategy in achieving its environmental objectives and boosting the economy.