Volkswagen and SEAT to commit 10 billion euros to electrify Spain
It will be the largest industrial investment in Spain’s history: construction of the first battery gigafactory, funded by Volkswagen and SEAT, will begin in the first quarter of 2023 and will lead to the creation of over 3,000 jobs.
The Volkswagen Group and SEAT will invest 10 billion euros, together with the partners in the Future: Fast Forward project. This was announced by Herbert Diess, CEO of the Volkswagen Group, who visited Parc Sagunt II, together with Pedro Sánchez, Spanish Prime Minister, Ximo Puig, President of the Generalitat Valenciana, Wayne Griffiths, President of SEAT and Thomas Schmall, Member of the Board of Management of the Volkswagen Group, CTO and Chairman of the Board of SEAT.
“The 10 billion euro investment will electrify Spain, creating a battery gigafactory in Sagunto, enabling the production of electric vehicles in the Martorell and Pamplona plants and building a complete ecosystem of suppliers. This is the largest industrial investment ever made in Spain,” explained Herbert Diess.
The meeting took place at Parc Sagunt II (Valencia), where the Volkswagen Group will build the country’s first gigafactory. The construction of this battery plant is one of the pillars of Future: Fast Forward project. Made up of a total of 62 national, international and reference companies from different sectors, the project was registered a few days ago in the PERTE VEC (Proyectos Estratégicos para la Recuperación y Transformación Económica, Vehículo Eléctrico y Conectado).
The gigafactory will have an annual production capacity of 40 GWh, supplying the total volume of cells in Martorell and Pamplona, and will create more than 3,000 jobs by 2030. Construction will begin in the first quarter of 2023, with production in 2026.
“The Sagunto battery manufacturing plant will be the third of six gigafactories that the Group plans to build in Europe. Sustainability and a closed loop of the value chain are key elements for the expansion of batteries in Spain and Europe. To name a few: with electricity to power the gigafactory coming from 100% renewable energy, a local approach and the reuse of raw materials, our new plant in Valencia will be an example of a circular economy,” added Thomas Schmall.
The agreement with Iberdrola to build a photovoltaic system
Volkswagen and the Iberdrola Group have signed a strategic agreement that will allow the construction of a photovoltaic system in Sagunto to supply green energy to the gigafactory. The solar plant will cover an area of 250 hectares and will be located less than 10 kilometers from the battery factory. In a first phase, it will provide 20% of the energy needed by the gigafactory.
