Volkswagen and SEAT Unveil Spain Electrification Plan

Investment and Goals

Volkswagen Group and SEAT aim to electrify Spain by creating a European Electric Vehicle Hub, including battery cell production and a sustainable e-ecosystem. They plan to invest over €7 billion with external suppliers along the entire e-mobility value chain. This initiative is part of the 'Future Fast Forward' program, which seeks to transform the Spanish automotive industry and democratize electric mobility across Europe.

Battery Cell Factory in Valencia

Volkswagen announced Valencia as the location for a new battery cell factory, their second after Salzgitter and the first outside Germany. The factory will produce next-generation cells using renewable energy, with a planned production capacity of 40 GWh annually. The project aims to employ over 3,000 people, with construction starting by the end of the year and production beginning in 2026.

Selection Criteria and Timeline

Valencia was chosen based on over 100 criteria, including a qualified workforce, public support, good logistics, and green energy. The timeline is tight, with the first milestone being the positive outcome of the PERTE submission and finalized permits. The project aims to raise productivity in Spanish car production and qualify workers for new tasks, including battery development and production.

Future Plans

Volkswagen plans to build six Gigafactories in Europe with a total annual capacity of 240 GWh. The group's demand for premium cells will be met by Northvolt in Sweden. To expedite the roll-out of further cell factories, Volkswagen has founded a European corporation for cell development and manufacturing, keeping the option open to integrate partners or investors. The Salzgitter plant in Germany will serve as a blueprint for all future plants, starting production in 2025.