The Valencia region in Spain has now finally been determined as the next location for the VW Group's European battery cell network. The carmaker announced on Wednesday that a plant with over 3,000 employees should start operating there in 2026.
A suitable plot of land was bought in Sagunto at the turn of the year. The city is around 300 kilometers southwest of Martorell, where the Seat subsidiary has its headquarters. The new cell factory will also supply the vehicle plant in Pamplona. The VW battery division PowerCo now also has its own branch in the center of Valencia, from where it can coordinate its activities in Spain.
90 million euros as a subsidy
In principle, the project had been known since last spring - however, Volkswagen still wanted to check the political funding conditions before a final decision was made. In this context, the largest European car company had applied for a program called "Future Fast Forward", in which other companies are involved in addition to VW and Seat. According to current information, a good ten billion euros will flow into the overall project.
At the end of December, the Spanish central government provided the autonomous community of Valencia with 90 million euros as a subsidy for the battery factory. After Salzgitter in Lower Saxony, the region will be the next place where the VW Group wants to produce its own battery cells for electric cars - not least in order to become more independent from the dominant suppliers from Asia. If you include a plant of the partner Northvolt in Skellefteå in northern Sweden, it is the third such location. Another cell factory is to come to Eastern Europe, but no definitive decision has been made on this yet.
"In Spain we are now starting to build up the management team and will soon start with the first construction work," explained PowerCo boss Frank Blome. "Further steps for Eastern Europe and North America are being planned." German politicians and the VW works council are also hoping for additional investments in Germany. According to reports, East Friesland around the Emden plant or the region around the Saxon sites of Zwickau, Chemnitz and Dresden could have opportunities.
Looking for professionals
The Spanish project is also about supplementary parts and production processes for e-mobility. For the battery cell production itself, VW is aiming for an electrical energy of 40 gigawatt hours per year. The Sagunto site is to be operated with green electricity. The group started a campaign to hire skilled workers.
A total of six internal cell factories are initially planned in Europe. But VW is also exploring the conditions for North American production. During the visit of Federal Chancellor Olaf Scholz (SPD) to Canada in August, a declaration of intent to promote electromobility was signed with the local government. In order to secure battery raw materials, the Wolfsburg-based company wants to invest in Canadian mines.
Other car manufacturers are also building their own cell plants or getting involved in joint projects, often costing billions. In addition, recycling is becoming more important. In China, Volkswagen tends to focus on holdings and cooperation with partner companies such as Gotion in battery production.
