VW and Seat’s huge investment in Spanish gigafactory

By Mike Hayes09 May 2022

A group including car manufacturers Volkswagen (VW) and Seat is investing €10 billion to build a huge gigafactory in the Valencia region of Spain.

A Volkswagen gigafactory currently operating in Chattanooga, US. Image: Volkswagen

When completed, the factory will produce batteries for all electric vehicles manufactured at the Martorell and Pamplona plants.

With an annual production capacity of 40GWh, the gigafactory will employ more than 3,000 people and occupy an area of some 200 hectares.

Construction of the facility is set to begin in the first quarter of 2023, with first production expected by 2026.

In a press release, VW said the factory represents the single largest industrial investment in Spain’s history.

VW and Seat have partnered with over 60 national and international companies in a project called Future: Fast Forward, of which the gigafactory is the main element.

Within 10km of the gigafactory, a photovoltaic plant covering some 250 hectares will be built by Spanish construction firm Iberdrola, to initially supply around 20% of the factory’s total energy requirement.

Herbert Diess, CEO of Volkswagen Group, who recently visited the site with Pedro Sánchez, Prime Minister of Spain, said, “This investment of €10bn euros will electrify Spain and Europe’s second-largest automotive manufacturer…and build up a comprehensive supplier ecosystem.”

He added: “The Volkswagen Group, Seat and the Spanish government share a vision: to make Spain a European hub for electric mobility. We are ready to initiate this transformation.”

The Sagunto site will be the third of six gigafactories that VW is planning to build across Europe, with two already confirmed for Germany and Sweden.

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