Electrifying Spain by creating a ‘European Electric Vehicle Hub’, as well as building up a battery cell production and fully sustainable E-ecosystem, are the goals of Volkswagen Group (VW) and SEAT for the Iberian Peninsula.

The Group declared its plan to apply to the Electric Vehicle PERTE programme after the Spanish government announced it would ‘open the call for applications’ on 1 April. The Group’s ‘Future Fast Forward’ programme would include a total investment of more than 7 billion euros together with external suppliers along the entire value chain of e-mobility. Furthermore, VW announced Valencia as the dedicated location for a new battery cell factory in Spain. All plans are still subject to final approvals, foremost the PERTE submission.

Thomas Schmall, VW’s Board member responsible for technology and chairman of SEAT, said: “This project is highly important — for VW, for Spain, and for the whole of Europe. It is our ambition to electrify Spain and we are willing to invest more than 7 billion euros, together with external suppliers, for the electrification of our Martorell and Pamplona plants, and the localisation of the battery value chain in Valencia.”

Sustainable battery production
Gigafactory Valencia would be VW’s second location after Salzgitter and the first one outside of Germany. Mr Schmall added: “In Valencia, we are planning to build up nothing less than next-generation cell production — a standardised factory, producing Volkswagen’s cutting-edge unified cell and supplied with renewable energy, enabling sustainable battery production. It will create a strong pulling effect in the whole battery value chain in Spain and beyond.

“The selection process was tough, and Valencia emerged as the strongest location based on more than 100 criteria — such as qualified workforce, public support, good logistic connections, and green energy. Volkswagen aims for a production capacity of 40GWh annually and plans to employ more than 3,000 people in Valencia.

“The timeline is tight, as to be ready to start production in 2026, construction of the plant should begin by the end of the year. The first milestone must be the positive outcome of the PERTE submission and finalised permits.”