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Volkswagen Group announces 40 GWh battery Gigafactory in Spain

SEAT CEO Wayne Griffiths (left extreme) and Volkswagen AG CEO Herbert Diess (second from the left) at the announcement. Source: Volkswagen Group

The Volkswagen Group and SEAT, along with other partners in the 'Future: Fast Forward project', have announced grand plans to electrify the automotive industry in Spain. Claimed as the single largest industrial investment in the country's history, the companies have pledged to mobilize 10 billion euros in this regard.

"This investment of 10 billion euros will electrify Spain and Europe's second-largest automotive manufacturer, creating a battery Gigafactory in Sagunto, enabling the production of electric vehicles at the Martorell and Pamplona plants, and building-up a comprehensive supplier ecosystem. This is the biggest industrial investment ever made in Spain", said Herbert Diess, CEO of the Volkswagen Group.

The proposed battery gigafactory will located be in Sagunto near Valencia, strategically chosen to supply battery cells to nearby EV plants in Martorell and Pamplona. It is reported that the project would cost €3 billion, and is expected to have an annual production capacity of 40 GWh.

A photovoltaic solar plant in 250 hectares is also strategically planned to be located less than 10 kilometres from the battery factory. In the first phase, the solar plant will provide 20 percent of the gigafactory's total energy needs, according to the company. 

Construction of the facility will begin in the first quarter of 2023, and production will start in 2026, according to the companies. This will be VW Group's third battery manufacturing site, the other two located in Sweden and Germany respectively. It plans to establish about six 40 GWh battery gigafactories in Europe to achieve a cumulative capacity of 240 GWh by 2030.

In Spain, SEAT, part of the Volkswagen Group, will invest €5 billion through to 2025 to develop new electric models for its two commercial car brands SEAT and CUPRA. The company aims to play a relevant role in the electrification of urban electric vehicles, with a special focus on the transformation of the Spanish automotive industry.

Author : Dhiyanesh Ravichandran
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