The Volkswagen group will mobilize 10,000 million euros to electrify its production in Spain. It will allocate 4,000 million to its car factories and 3,000 million to the production of batteries. The rest –3,000 million– will be donated by its project partners ‘Future: Fast Forward’a group of companies that opt for the Perte electric car funds – the Strategic Project for the Recovery and Economic Transformation of the Electric and Connected Vehicle (Perte VEC)–.
It is “the largest industrial investment made in the history of Spain” to “ensure the future of the automobile” at a national level, said the president of the Volkswagen group, Herbert Diessat the presentation of the project for the new battery gigafactory for electric cars that the Volkswagen Group will build in Sagunto (Valencia).
“This investment of 10,000 million euros will electrify Spain, the second European car manufacturing country, creating a battery gigafactory in Sagunto, producing electric vehicles in the Martorell and Pamplona plants, and creating a broad ecosystem of suppliers”, explained Herbert Diess.
The representatives of the multinational have committed to accelerating the construction of a new battery gigafactory, which will lead to the creation of 3,000 direct and qualified jobs until 2030, in addition to advancing that the plant will be supplied by 20% of solar energy thanks to Iberdrola as partner of the project presented to the Perte of the electric vehicle. This solar plant, with an investment of 500 million from the electricity company, will cover 250 hectares and will be located less than ten kilometers from the battery factory.
According to its forecasts, the construction of the gigafactory will begin in the first quarter of 2023, it will occupy an area of 200 hectares, production will start in 2026 and it will be managed by Volkswagen’s Power Co company. It will have an annual production capacity of 40 GWh to supply the total volume of cells to the Martorell and Pamplona plants.
Spain, European battery hub
The president of the Government, Pedro Sanchezand Herbert Diess, have agreed on the objective of making Spain a European ‘hub’ for electric mobility.
Diess, has predicted that after the battery factories in Germany and Sweden, Sagunt will be the third in production in Europe and this will be followed by three new ones from the group on the continent until 2030.
Diess has highlighted that the Valencian gigafactory will produce batteries for the models that they manufacture in Martorell and Pamplona, plants that have assured that they will direct their production towards the electric vehicle.
And in general he has assured that Spain will play a decisive role in the European ‘green deal’ and that in 2050 “at the latest”, Volkswagen will be a neutral company in CO2 emissions thanks to solar and wind energy. In figures, he highlighted that the delivery of electric cars by the group increased by 65% in the first quarter of 2022 with up to almost 100,000 globally.
Along the same lines, the chairman of the board of directors of Seat has recalled that the one in Sagunt will be its first battery plant outside of Germany and that it is part of the electrical transformation that they announced a year ago to demand 240 gigawatts until 2030, “more or less six gigafactories in Europe for Volkswagen alone.”
He has advanced that they will “get to work” with the construction in Parc Sagunt and that the intention is that this plant can meet the group’s demand in Europe. “We are going to adjust the cost of the batteries up to 50%”, he announced.
The ‘Future: Fast Forward’ project
The partners of ‘Future: Fast Forward’, an initiative led by the Volkswagen group and Seat, registered the project last Wednesday in the Strategic Project for the Recovery and Economic Transformation of the Electric and Connected Vehicle (Perte VEC).
The project is made up of 62 national and international companies -61% of which are SMEs- and constitutes “the largest business group in the history of the automotive industry in Spain”
‘Future: Fast Forward’ is made up of four main axes: the first, led by Seat and Volkswagen, aspires to electrify the Martorell (Barcelona) and Pamplona factories; the second is the creation of the battery ecosystem for electric cars, which encompasses everything from lithium extraction in mines to battery assembly.
The third axis contemplates the location in Spain of “essential” components for electric vehicles and the fourth includes areas related to training, digitization and the circular economy.
Among the partners of the Future: Fast Forward is Iberdrola, which, in a statement, has assured that it will play “a relevant role” in the consortium, promoting sustainability in the manufacturing process of electric vehicles and reducing carbon dioxide emissions ( CO2).
The company has explained that its contribution will be focused on the decarbonisation of the Seat factories in Martorell and Volkswagen in Pamplona, the development of photovoltaic self-consumption projects and the development of smart recharging solutions and to test second-hand batteries.
The partners of this project are: Altech, Asai Industrial, Azterlan, Balidea, BeePlanet Factory, Bosch, Brose, Carto, Celsa Group, Cetim, Cidetec, Cenim – CSIC, Cerler Global Electronics, CYP Core, Delta Vigo, Enso, Feníe Energía , Forminsa, GCR Group, Gestamp, Glavista, Gonvarri, Grupo Sesé, Grupo Simoldes, Iberdrola, Intrustial, IMS Technology, Ingedetec, University Research Institute (Circe) Zaragoza University or isEazy.
Also participating are Isend, Kapture.io, Kautenik, Kivnon, Lazpiur, Leartiker, Libelium, Lithium Iberia, Malena Engineering, Mindcaps, Mol-Matric, Motorland Aragón, NTDD, Nutai, Órbita Ingeniería, Pomceg Electronics, Power Innotech, Power HoldCo Spain, Seat CODE, Seat MÓ, Seat SA, Silence, Grupo SPR, Sumitomo Electric Bordnetze, Técnicas Reunidas, Tecoi, Valeo, Vega Chargers, Vicomtech, Volkswagen Navarra, WIP and Zylk.