Investor advisory urged for electromobility sector, with potential risks highlighted
Rewritten Article:
Barcelona, Jan 27 – Carlos Mazón, the President of the Valencian Community, sounded the alarm on Monday, warning that a lack of incentives for electric cars could undermine projects like the battery gigafactory. He urged the Government to revive the Moves plan, a crucial initiative included in the omnibus decree.
Speaking at an event promoting electric cars at Casa Seat in Barcelona, Mazón underscored the significance of the Volkswagen group's investment in building a battery cell plant in Sagunt, Valencia. He deemed the gigafactory as essential for the economic recovery the region desperately needs.
"The gigafactory is non-negotiable," he declared, emphasizing its importance in the wake of the storm that ravaged much of the Valencian province last October.
Mazón called for incentives to spur the electric vehicle (EV) market, specifically urging the Government to approve the revised Moves plan. This plan, which provides aid for zero-emission car purchases, has been derailed due to the rejection of the omnibus decree in Congress last week.
"The Government's role is significant in this matter, and I hope the Moves plan's delay is temporary," he said, expressing hope that both the Moves plan and aid for storm-affected areas would be passed promptly, without political hang-ups.
Besides Mazón, the event was attended by Jordi Hereu, Minister of Industry, as well as the presidents of Catalonia, Salvador Illa, and Navarra, María Chivite, and the president of Seat, Wayne Griffiths. Griffiths echoed Mazón’s sentiments, expressing hope that the delay in approving the Moves plan is temporary.
When quizzed by journalists about the government's inability to pass the omnibus decree, Griffiths recalled that Seat has consistently advocated for direct aid. He clarified that the issue with Moves isn't about funding, but rather about implementing a more agile aid mechanism.
Insights:
- The Moves plan, an initiative providing incentives for EV purchases and charging infrastructure deployment in Spain, has been extended until the end of 2025 with an additional €400 million in funding[1][2][5]. EU incentives are designed to lower EV costs for consumers, stimulate demand, and foster development of EV-related industries and infrastructure[4].
- The sustained support for the EV market, including the continuation of the Moves plan, is deemed crucial for the success of battery manufacturing ventures like the Valencian Community's gigafactory[1][4]. These incentives help create a favorable environment for EV adoption, stimulating demand and infrastructure development, which are vital for the battery manufacturing sector and its associated ecosystem[4].
- The delay in the approval of the Moves plan, which offers incentives for zero-emission vehicle purchases, is a concern for the President of the Valencian Community, Carlos Mazón, as it could jeopardize the financing of critical projects like the battery gigafactory in Valencia.
- The battery gigafactory, essential for the economic recovery of the Valencian Community, is at risk due to the lack of government incentives for electric cars, as pointed out by President Mazón during an event promoting electric vehicles.
- The Role of EFECOM, the electric car financing company, in fostering the electric vehicle market and battery manufacturing ventures like the Valencian Community's gigafactory, could be significantly impacted by the Government's handling of plans like Moves.
- The lack of incentives for electric cars, as mentioned by Carlos Mazón, could also potentially impact the businesses and technology sectors in Valencia, especially considering the strategic importance of the battery gigafactory for the region's economic recovery.
