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Spain Faces Security Scrutiny Over SAIC’s Planned Ferrol EV Plant

The decision will test how Madrid balances regional job creation with espionage risks near a major naval arsenal.

Overview

  • Reports on Monday said Spain’s Defence Ministry and the CNI flagged security risks from SAIC’s planned assembly plant roughly 5 km from the Ferrol naval arsenal and Navantia shipyards.
  • The central government urged calm and said the project can be reviewed and made compatible with national security by imposing conditions before the Council of Ministers gives final approval.
  • Galicia’s Xunta has branded the investment strategic and says SAIC will invest about €170–200 million to create roughly 1,000 direct jobs and reach an annual capacity near 120,000 cars, with works aimed to start in 2027 and operations by late 2028.
  • Navantia and the Spanish Navy plan to strengthen cyber and site protections because they worry that local subcontractors and workers who serve both the shipyard and the car plant could pose human‑intelligence and supply‑chain vulnerabilities.
  • Large recent arrivals of Chinese cars — including 700 MG vehicles unloaded in Ferrol on July 8 and about 6,100 vehicles at Vigo’s Bouzas terminal — show why SAIC wants an EU assembly base and signal wider shifts in ports and auto supply chains that could affect local industry and foreign defence ties.