Instituto Bolívar de Estrategia y Diálogo
Pensamiento Estratégico, Diálogo Global

Support from Illa in Seoul for Lotte's Electric Battery Project Ensures Its Feasibility

May 30, 2025, 15:11

On Friday in Seoul, Salvador Illa, President of the Generalitat, reaffirmed the government's commitment to Lotte's ambitious project to invest 1.2 billion euros in an electric battery plant in Mont-roig del Camp, Tarragona. This week, the local council approved the urbanization and redistribution plans for the Els Comellarets area. Illa hinted that the Generalitat would likely grant the necessary environmental license without major hurdles, although environmentalists and the Unió de Pagesos have filed two legal challenges due to potential ecological impacts.

During his five-day Asian tour, which began with four days in Japan, Illa met with Yeonsup Kim, Lotte's CEO, and Gyeyeon Cho, the executive director, at the company's headquarters. He embraced the investment commitment initially made by his predecessor, Pere Aragonès. The visit coincided with Mont-roig's decision to advance urban licenses, though Illa denied any direct causality. Lotte plans to create 1,400 jobs with this project.

Mont-roig is now steering toward hosting Lotte's electric battery initiative—an enterprise originating from South Korea, whose name is inspired by a Goethe character, and operates businesses ranging from food to hotels and theme parks. The company, based in a landmark 130-floor tower in Seoul, beside a Jaume Plensa sculpture, already runs battery plants in its home country and Malaysia. The Tarragona site will be its first in Europe. The plan has sparked both excitement from the government and opposition from environmental groups and the Unió de Pagesos.

In statements made at the grand, central Gwanghwamun Square, with the Gyeongbokgung Palace in the background, Illa assured that Lotte's environmental license is progressing but emphasized the complexity of industrial projects, stating, "It's not like opening a 'store.' It must proceed swiftly yet thoroughly." Despite the legal challenges, he remains confident in the project's success, asserting it is "well-conceived and necessary for Catalonia's prosperity," especially after losing a Volkswagen battery plant to Valencia in 2023.

After scouting locations in Andalusia, Aragon, and the Basque Country, Lotte chose Mont-roig for its proximity to the Port of Tarragona and its equidistant location from Zaragoza and Valencia. The initial investment of 600 million euros could double, focusing on producing Elecfoil sheets. Environmental entities and the Unió de Pagesos are concerned about the impact on agriculture and water resources, particularly in a region just recovering from drought. Illa confidently responded to these issues, stating, "Catalonia is poised to generate prosperity."

Earlier this month, 3,000 people camped in protest at the proposed factory site. The demonstration, organized by Revoltes de la Terra, Salvem Montroig, Unió de Pagesos, and Revolta Pagesa, included a slow tractor march. While the groups criticize the potential ecological footprint, Illa respects their perspective but highlights the broad consensus supporting the project. The government sees a need for more industrial investment in Tarragona, emphasizing the significance of such projects. In addition to Lotte's venture, Illa also visited Seegene, a leader in PCR production during the pandemic, and the Catalan firm's headquarters, Werfe, which plans further investments in Lliçà d’Amunt, home to its main tech center.

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