Volkswagen AG and partners will invest 10 billion euros to build electric vehicles and batteries in Spain.
German carmaker Volkswagen AG and partners will invest 10 billion euros ($10.6 billion) to build electric vehicles and batteries in Spain, its chief executive said on Thursday, 3 billion euros more than previously thought.
The company also announced a partnership agreement with Spain’s largest electricity utility Iberdrola, which will set up a solar park to partially power a battery plant in the municipality of Sagunto, near Valencia.
Iberdrola will invest 500 million euros in the electrification plan, its chief executive, Ignacio Sanchez Galán, told reporters, without giving further details.
Volkswagen said in March that it would invest 7 billion euros to build battery plants and produce electric vehicles at its two car factories in Spain, but CEO Herbert Diess said that with new partners on board the figure would be increased to 10. billion has been done.
“We will electrify the second largest carmaker in Europe (Spain) with a new giga-factory of batteries and two plants producing electric cars,” Dias said at an event in Sagunto. An ecosystem of suppliers from lithium extraction to battery assembly”.
Speaking with Spanish Prime Minister Pedro Sanchez on his visit to the site where the factory will be built.
The German carmaker aims to begin construction of the 40-gigawatt-hour (GWh) plant in the first quarter of 2023, with serial production slated to begin by 2026. By 2030, the site will employ more than 3,000 employees, Volkswagen said.
Spain, Europe’s biggest carmaker after Germany, last month began a bidding process for nearly 3 billion euros in loans and grants to boost electric vehicle (EV) production. Volkswagen and its Spanish arm SEAT have placed the bid.
The winners of the PERTE Fund, as the program is known, which consists mostly of the European Union Epidemic Relief Fund, will be chosen this year.
The company will invest 3 billion euros in four SEAT factories, including 3 billion euros at the plant in Sagunto, the Martorel plant near Barcelona and 1 billion in Pamplona.
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