Battery cell production: VW plans new Gigafactory in Spain

Volkswagen has announced a total of six large factories in Europe for the production of battery cells for electric cars. Billions are now flowing into places in Spain. Other companies are also investing in the technology.

Volkswagen Group has confirmed plans for a new battery cell factory in Spain. The plant is to be built in Sagunto, in the Valencia region, about 300 kilometers south-west of VW subsidiary Seat’s headquarters near Barcelona. The group intends to invest a total of 7 billion euros in Spain.

well trained professional

The money should not only go to battery production – VW is also interested in other parts of the production process related to e-mobility. The group also wants to invest in the electrification of plants in Matorel and Pamplona in northern Spain.

From Volkswagen’s point of view, the location near Valencia on the Mediterranean coast offers good conditions: there is, among other things, a well-trained workforce, good logistical connections and green energy. Spanish Prime Minister Pedro Sanchez welcomed Volkswagen’s decision. He wrote on Twitter that Spain’s transformation is moving fast.

More independence from suppliers from Asia

Valencia has 3,000 employees to work at the plant from 2026. However, the project is still subject to final approval – and Volkswagen’s application for a subsidy program from the Spanish government is successful.

Overall, VW, along with the partners, wants to do this in the coming years. Set up six gigafactories in Europe – To be less dependent on suppliers from Asia. Valencia will be VW’s second European cell factory under its management, after the Salzgitter site in Lower Saxony. Volkswagen operates a third battery cell factory with partner Northvolt in Skeleftia, Sweden.

Another factory built in Italy

The alliance of two carmakers Stellantis and Mercedes-Benz and oil company Total also announced today the construction of a new factory for battery cells. Production will take place in Italy.

Battery cells are the heart of e-cars. Their performance determines the range and thus acceptance of the vehicles. Considered a sufficient supply Breakthrough for the rapid expansion of electromobility,

With information from Franca Velez, ARD Studio Madrid.