Extremadura continues to take significant steps to establish itself in the field of sustainable mobility. An ambitious electric vehicle factory owned by the Chinese brand Lum Auto will be built in the region in the near future. The company has already publicly announced that it is evaluating several locations in Extremadura. Lum Auto currently plans to produce compact, four-door electric cars with an urban profile, all as part of a project that also includes the construction of charging stations.
On Friday, representatives of Lum Auto, accompanied by members of the Junta de Extremadura, personally inspected potential sites for the development. This information is expected to be sent to Shanghai for a decision. Based on available capacity and industrial land, Mérida, Badajoz, Cáceres, or Navalmoral de la Mata could be considered as possible locations.
With this initiative, Extremadura will become the gateway to Europe for a highly successful electric mobility company, which has delivered over 20,000 vehicles in the last two years to regions such as the Middle East, Africa, and Latin America. Already a leader in sustainable mobility, Lum Auto is now focusing on the sale and distribution of New Energy Vehicles (NEVs).
“The opportunities offered by Extremadura for attracting foreign investment are unmatched,” tirelessly emphasizes Economy Minister Guillermo Santamaría. This is especially true in the case of China. For example, Hunan Yuneng will have a groundbreaking cathode factory in Mérida by early 2026. This represents an investment of €800 million and is expected to create around 500 direct jobs in its first phase. This is seen as a significant economic boost for the capital of Extremadura.
Lum Auto’s announcement coincides with the Second International Forum on Electromobility and Hydrogen, which brought together numerous companies, predominantly from China, in Extremadura. Both electromobility and hydrogen are clear objectives of the Extremaduran Government. In Navalmoral de la Mata, the Asian giant Envision plans to build a battery megafactory that will create 900 jobs in an area affected by the closure of the Almaraz nuclear power plant.
For the Extremaduran government, the existing relations with China represent a real opportunity for the region, whose industrialization is now being pursued on two major fronts. First, it involves saving the Almaraz nuclear power plant and extending its lifespan, as it secures over 3,000 jobs in the north of Cáceres and generates nearly €100 million in taxes annually. This initiative is closely linked to the two large data centers planned by Merlin Properties in the region.
Second, it also strengthens the defense sector. Europe’s rearmament and the Spanish government’s planned increase in military spending have led Extremadura to quickly join the Ruta de la Plata corridor, utilizing the two arms factories of the German giant Rheinmetall in the Campo Arañuelo region. Overall, Extremadura is pursuing the goal of almost completely transforming its industry.
