The Volkswagen Group chooses Valencia for its new gigafactory

While Stellantis announced the green light for the gigafactory in Italy, the Volkswagen Group announced the ambitious plan to transform Spain into its European hub for electric vehicles. Project that also includes the construction in Valencia (Sagunto precisely) of a new battery cell factory of electric cars.

The German group announced today its plan to join the “PERTE” program for electric vehicles after the Spanish government announced the opening of the tender for 1 April 2022. All of this is part of the Future Fast Forward plan of SEAT in which the Spanish brand and the Volkswagen Group will invest 7 billion euros. Plan that also provides for the adaptation of the Martorell and Pamplona plants to build electric cars.

The new battery cell plant in Valencia will be the second for the Group after that of Salzgitter, the first outside of Germany. It will be a factory powered by renewable energy sources where the new “unified cell” will be produced, which will be used on all the Group’s future new electrical systems. A site that will have an important impact on the local economy as it will create many new jobs both directly and at the related level.

The Volkswagen Group chose Valencia after considering multiple aspects such as access to renewable energy sources, good logistical connections, the possibility of having a skilled workforce and more. The Group aims for one production capacity equal to 40 GWh per year and plans to employ more than 3,000 people in Valencia. Construction of the new plant is expected to start by the end of the year. Production of the cells is expected to start in 2026.

In total, the Volkswagen Group plans to build six Gigafactories in Europe with an annual capacity of 240 GWh. The cells for the premium vehicles will be manufactured by Northvolt in SkellefteƄ, Sweden. To speed up the implementation of all other cell factories coming to Europe, the Volkswagen Group has founded a European company for the development and production of cells and keeps the possibility of integrating partners or investors open.


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