Posted on 11 Jul 2024
AESC has broken ground for a lithium iron phosphate (LFP) battery gigafactory in Navalmoral de la Mata, Cáceres, Spain, Kallanish Power Materials learns.
The Spanish factory will manufacture “the latest generation” of LFP battery products, with first production expected in 2026. Though Phase 1 is estimated to demand €1 billion ($1.08 billion) in investment, the company is yet to confirm production capacity volumes.
This is AESC’s third battery gigafactory in Europe after its layouts in Sunderland, UK and Douai, France. The company says it will be one of the first at-scale LFP battery producers in Europe. In addition, the plant will become the first carbon-neutral gigafactory in Spain, as a part of the Net Zero Industrial Park.
Spain’s President Pedro Sánchez says during the ceremony that the project “will undoubtedly help to boost the region, not only helping to create hundreds of jobs in its initial phase, but also positioning Extremadura as an international benchmark in the automotive industry of the future.”
He also indicates that the government is committed to attracting foreign investment to sectors that create “stable, dignified and quality employment.”
Knudt Flor, AESC’s ceo for US and Europe, highlights the potential of the facility to promote technological and economic development in the region of Extremadura, as well as to promote collaboration between different actors in the field of sustainable mobility and renewable energy.
In February, the Ministry of Industry and Tourism of Spain announced that a total of 26 battery projects will receive support from the Electric Vehicle Project II (PERTE VEC II). The funding scheme focuses on electric and connected vehicle batteries and is part of the country’s economic recovery and transformation programme.
The economic and commercial office of the Spanish Consulate in China said that this gigafactory in Spain is a large beneficiary of this project, as it will receive €200 million in subsidies and €100m in loans.
AESC, previously known as Envision AESC, is Japan-based but Chinese-owned.
Source:Kallanish Power Materials
