Spain is investing heavily in Chinese capital to revive its automotive and battery industries. Spain's strategy is clear: to use Chinese investment and technology to accelerate the growth of its electric vehicle and battery ecosystem.
However, while Spain is attracting Chinese battery and car manufacturers to set up factories in the country, the government is also pushing hard for the European Union to pass a "Made in Europe" bill.
The bill would set minimum quotas for components that must be manufactured within the EU, along with employment conditions, technology transfer requirements, and restrictions on asset ownership for foreign investors in strategic sectors.
The bill would protect EU manufacturers from unfair foreign competition and help ensure that Spain's economy does not fall victim to a "race to the bottom" — driven by competing subsidy offers to attract investment — which drags down standards and benefits whether in competition between domestic regions or between EU member states.
Catalonia and Extremadura are among the autonomous communities presenting themselves as a "gateway to Europe" for China, opening offices in China and establishing China-focused teams in Spain to attract investors.
Major Chinese state-owned automaker SAIC and Chery, as well as CATL — the world's largest battery technology developer and manufacturer — and AESC, a leading global manufacturer of lithium-ion batteries for electric vehicles, are setting up electric vehicle and battery production facilities in Spain.
BYD and Hongqi are also reported to be evaluating possible locations for establishing factories in the country.
CATL will bring as many as 1,700 Chinese workers to build its battery manufacturing plant in Zaragoza, and also plans to recruit and train 4,000 Spanish employees to operate the facility.
AESC, for its part, has pledged to employ 40% European workers and 40% Spanish management, and to run an employee training programme for its plant in Extremadura by 2030.
Last month, Geely reached an agreement to acquire a stake in Ford Motor's factory in Spain.
Spain is Europe's second-largest car manufacturer, after Germany, with an automotive industry that employs 600,000 people and accounts for 10% of GDP. However, Spain has few strong domestic car brands and is largely a production base for foreign automakers.
Sources: Reuters / GlobalData / impactpolicies.org
