Volkswagen Group and SEAT reveal electrification plan for Spain

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 40 GWh annually and plans to employ more than 3,000 people in Valencia. The timeline is tight: 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 finalized permits.

Thomas Schmall: “Transforming an entire industry is a huge challenge. To be competitive in the new electric world, we now have to raise productivity in our Spanish car production. And we need to qualify many of our people for new tasks, including battery development and production. This calls for a lot of flexibility by everyone and a possible change of jobs. But the important news is: The overall effect on employment will be positive – despite the faster assembly times in the electric car manufacturing. If we do it right and get the right support by the Spanish government, we will be able to create additional jobs in this transition for Spain.”

In total, Volkswagen plans to build six Gigafactories in Europe with an annual capacity of 240 GWh together with partners. The group’s demand for premium cells will be met by Northvolt in Skellefteå, Sweden. To speed up the roll-out of all further cell factories coming up for Europe, Volkswagen has founded a European corporation for cell development and manufacturing and keeps the option open to integrate partners or investors. Its center of gravity – and a blueprint for all following plants – will be the Salzgitter plant in Germany starting production in 2025.