According to reports from T&E, 79% of projects are at risk due to the reduction of the American Inflation Act (IRA) which encourages green energy projects.
Tuesday, March 7, 2023, 3:10 pm
More than three quarters of lithium production projects in Spain are at risk of being delayed, reduced or cancelled, according to reports from the environmental organization T&E. According to his information, 79% of projects to produce lithium-ion batteries for electric vehicles in Spain could be at risk due to US protection, through the Inflation Reduction Act (IRA), which 369,000 million green industrial projects, including factories of this type.
“IRA Actu subsidies are a particular threat to the plans of the gigafactories, unless Europe allows prompt and expeditious assistance,” warned the organization in a statement.
According to T&E’s analysis, this threat includes the plants of Envision Asia in Navalmoral de la Mata (Cáceres) and Basquevolt in Vitoria, projects “that have not yet obtained sufficient financing”, the matter highlighted.
Envision was left out of the first line of support from the Strategic Project for the Recovery and Economic Transformation of the Electric and Connected Vehicle (Perte VEC) due to the lack of roots in Spain, however, he expressed his intention to continue with the project. .
He also indicates his intention to apply for the second aid called by the Perth VEC, in which some aspects will become more flexible, such as those that excluded the company’s projects in the first round. In addition, he requested 115 million of the money from regional incentives granted by the state to “promote business” and to direct his position in previously determined areas to alleviate inter-territorial inequalities.
Meanwhile, the Basquevolt project is expected to start producing battery cells in 2027 with the goal of reaching 10 gigawatt hours of capacity. This industrial project will require an investment of 700 thousand euros and will generate about 800 direct jobs.
In this context, T&E calls for both “assistance at the European level with financial support for the production of batteries and a faster approval process” for projects that are “at risk of receiving US subsidies”.
“The report considers Envision to be a medium risk, which has not yet been considered for funding by Perth VEC. “Basquevolt, whose funding is mainly devoted to research projects and appears insufficient for the scale of production required for the project, is also a medium risk,” the order noted.
On the other hand, T&E highlighted the possibility that the Inobat Slovak initiative, which is now evaluating whether it wants to locate its new battery gigafactory in Valladolid or in the city of the Kingdom of Great Britain, is “a greater risk” not finally land. in Spain
Threat in Europe
According to the report, across Europe, 68% of the batteries at risk of manufacturing are lithium-ion, and specifically the production capacity for 18 million electric cars (1.2 terawatt hours). “He is at high or medium risk of being interrupted or lost.”
“Without this development, Europe will not be able to meet the demand for its batteries in 2030 and will have to import them from foreign competition,” said T&E, which estimated the 50 gigafactories announced in the Old Continent, in their finances and permits; if the lease and partnership agreements were settled in the United States.
“Puglia manufacturing in the EU is in a very delicate situation between the United States and China. Europe has to do everything or risk losing. A green industrial policy focused on batteries, with support throughout the EU to increase their production, is strongly needed to deal with subsidies and years of Chinese domination US,” said the head of Electrification at T&E, Carlos Rico.
The cheapest electric cars
Among these lines, the organization pointed out that Germany, Hungary, Spain, Italy and Britain are the countries that “stand to lose the most if the engineers change their plans”.
According to his analysis, Tesla’s ‘Giga Berlin’ plant is most at risk of delays in Europe, after it announced that it would focus on manufacturing cells in the United States to take advantage of the incentives of the IRA Act.
“There is a medium risk because Northvolt is planning a gigafactory in Heide, Germany, while the company has only received part of the financing and construction has not yet begun. In addition, Northvolt’s CEO said last October that he could delay the plant and the prioritization of expansion in the United States,” T&E added.
In this way, Rico decided that the European response to the IRA Law, which should have been known on March 14, should “replicate” its simplicity and visibility through a medium set for all Member States to prioritize accessible batteries’ price bands; renewable energy and consumer grids.
“The EU cannot compete unless it has a strong industrial policy aimed at increasing production and rewarding environmentally sustainable enterprises,” he added.