Volkswagen Pumps Up BEV Investment in Spain

Volkswagen will invest €10Bn ($10.8Bn) into electrifying transportation in Spain a nation it sees as the one of the largest potential markets for BEVs in Europe.

The automaker, in tandem with its Spanish sub-brand Seat, wants to see the construction of the county’s first battery Gigafactory beginning in the first quarter of 2023 and creating more than 3,000 jobs. The plant will be located at Parc Sagunt II in Valencia and its construction is one of the main projects included in the automaker’s Future: Fast Forward program. The 62 national and international companies and benchmark firms that form the project applied to the Strategic Project for Economic Recovery and Transformation program (in Spanish, PERTE) for the Electric and Connected Vehicle (in Spanish, VEC).

The Gigafactory will have an annual production capacity of 40 GWh, supplying the total volume of cells to Martorell and Pamplona. It will occupy an area of 200 hectares and production is expected to begin in 2026.

On top of this, Volkswagen and Iberdrola Group signed a strategic agreement that will allow the construction of a photovoltaic plant in Sagunto to supply the Gigafactory with green energy. The solar plant will cover 250 hectares and will be located less than six miles from the battery factory. In the first phase, it will provide 20% of the plant’s total energy.

Seat S.A. is the only company that designs, develops, manufactures and markets cars in Spain. It exports more than 80% of its vehicles and is present in 75 countries. Herbert Diess, CEO of the Volkswagen Group, said: “This investment… 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. The Volkswagen Group, Seat S.A. and the Spanish Government share a vision: to make Spain a European hub for electric mobility. We are ready to initiate this transformation. The PERTE serves as a model for the whole of Spain on how traditional industrial structures can be transformed.”

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_

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