Valencia chosen as site for new Volkswagen Group gigafactoryTurning Spain into a European hub for e-mobility: this is the goal of the Volkswagen Group, which is ready to invest more than 7 billion euros together with external suppliers. Plans include building a gigafactory for battery cell production near Valencia, which would lead to the creation of more than 3,000 jobs. SEAT and the Volkswagen Group intend to formally apply for the PERTE plan.

Electrifying Spain, creating a European hub for
the electric car
, starting the

production of battery cells

 and building a comprehensive and sustainable e-mobility ecosystem.

With these goals in mind, the
Volkswagen Group
 e
SEAT
 have announced their intention to formally apply under the
PERTE plan
 (an acronym, in Italian, for Strategic Project for Economic Recovery and Transformation) implemented by the Spanish government.

Focus on the entire emobility value chain

The program

Future: Fast Forward

 would involve a total investment of
more than 7 billion euros
, with support from external suppliers, along the entire electric mobility value chain.

This is also the context for the choice of
Valencia
 as the location for a new
gigafactory
 intended for the production of battery cells. Plans and investments are still subject to final approval, tied primarily to the Iberian government’s decision on the application for the PERTE plan.

Gigafactory Valencia

The Valencia gigafactory would be the second built by the Volkswagen Group, after

Salzgitter

 – the first outside Germany. A standardized factory to produce the Group’s unified cell, powered by
renewable energy
 so as to enable the sustainable production of
batteries
. “It will have a strong driving effect in the entire battery value chain, not just in Spain,” said
Thomas Schmall
, Volkswagen Group Board Member with responsibility for Technology and Chairman of the Board of Directors of SEAT S.A.

The location selection process was very complex; Valencia emerged as the best option based on
more than 100 criteria
 ranging from the availability of skilled labor to public support, the presence of
logistical connections
 adequate to the availability of green energy. The Volkswagen Group’s goal is an
annual production capacity of 40 GWh
; plans include the creation of
more than 3,000 jobs
. The schedule is tight: to start production in 2026, construction work on the gigafactory should start by the end of the year.

Flexibility and competitiveness

“Transforming an entire industry is an incredible challenge,” Schmall continued. “To be competitive in the era of
electric mobility
, we need to increase productivity at Spanish sites. And we need to qualify a good part of our staff in the perspective of new activities, for example, battery development and production. This requires a high level of
flexibility
 on the part of everyone and implies the possibility of job changes. But what is important is that the overall effect on employment will be positive, despite the shorter assembly time of the
electric cars
. If we act well and have adequate support from the Spanish government, we will be able to create new jobs in the Iberian Peninsula during the transition“.

Major investments

“This is an extremely important project. – for the Volkswagen Group, for Spain, and for Europe as a whole. Our ambition is to electrify Spain and invest heavily, together with other partners, in the
conversion
 of our plants in
Martorell
and Pamplona and in localizing the
value chain
 of batteries in Valencia” added Thomas Schmall.

“

Future: Fast Forward

 has the potential to transform the Spanish automotive industry and democratize electric mobility in Europe,” said
Wayne Griffith
, President of SEAT. The more than 7 billion euros allocated by the Group and SEAT would represent the largest industrial investment in Spain’s history.

Group’s plans for gigafactory

The Volkswagen Group’s strategy is to start operations, together with partners, in
six gigafactories in Europe
, with a total annual capacity of 240 GWh. Cells destined for the premium segment will be produced by Northvolt in
Skellefteå
, Sweden.

To speed up the process of commissioning the other European facilities, the Group created a European company specifically for the business of
batteries
 – from cell development to production-with the possibility of integrating partners or investors. The Salzgitter gigafactory, where production is scheduled to start in 2025, will be the hub for all activities and will serve as a model for all subsequent sites.

 

VGI | O.U. Responsible: VP | Date of creation: date of article | Class 9.1

https://modo.volkswagengroup.it/it/vision/valencia-scelta-come-sede-per-una-nuova-gigafactory-del-gruppo-volkswagen