The European Union has been very open about its desire to achieve net-zero emissions by 2050, a goal that may also prompt it to require that new vehicles produce zero emissions by 2035, as Ford Authority reported earlier today. Now, a large portion of EU recovery funds – 4.3 billion euros ($5.1 billion USD) – will reportedly go toward a Spanish EV investment that aims to ramp up electric vehicle and battery production in the country, according to Reuters.
“It is important for Spain to react and to anticipate this transformation in Europe’s automotive sector,” said Prime Minister Pedro Sanchez. Sanchez added that an additional 19.7 billion euros could be invested by Spain’s private sector between 2021 and 2023, with the hopes that the Spanish EV investment can result in Europe’s second-largest automaker receiving its very first battery plant.
The EV investment is part of a broader 13 billion euro incentive geared toward sustainable transportation, which is expected to grow by five percent by 2030. Spanish officials expect that government initiatives will increase the number of EVs registered in the country from 18,000 in 2020 to 250,000 in 2023, create 140,000 new jobs, and boost the nation’s economy by 1-1.7 percent.
Ford is in a good position to benefit from this investment after announcing its commitment to convert 100 percent of its passenger vehicle lineup to zero-emissions capable, all-electric, or plug-in hybrid power by mid-2026 and go all-electric by 2030 or sooner. Meanwhile, the European Union is reportedly planning on tightening its emissions standards in the coming weeks that will effectively result in a new ICE vehicle ban by the year 2030.
As Ford Authority reported earlier this year, Ford recently announced that it will invest an additional €5.2 million ($6.13 million USD) to support increased battery pack assembly capacity at Ford Valencia Engine Plant in Spain, and will build the new 2.5L Duratec hybrid engine at the plant starting in late 2022.