Battery cell production: Volkswagen plans to set up a new Gigafactory in Spain

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

Volkswagen Group has confirmed its plans to set up a new battery cell plant in Spain. The plant will be built in Sagunto in the Valencia region, about 300 kilometers southwest of the headquarters of Volkswagen subsidiary Seat near Barcelona. The group intends to invest a total of about seven billion euros in Spain.

Well trained professionals

The money shouldn’t just go to battery production – Volkswagen is also interested in other parts of the production process related to e-mobility. The group also wants to inject money into the electrification of factories in Mattoril and Pamplona in northern Spain.

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

More independence from suppliers from Asia

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

In general, Volkswagen, along with partners, wants to build six giant plants in Europe in the coming years – to also become less dependent on suppliers from Asia. After the Salzgitter site in Lower Saxony, Valencia will be VW’s second European cell plant under its own management. Volkswagen operates a third battery cell plant with its partner Northvolt in Skelleftea, Sweden.

Another factory was built in Italy

A consortium of car manufacturers Stellantis, Mercedes-Benz and the oil company Total announced today the construction of a new battery cell plant. Production will take place in Italy.

Battery cells are the heart of electronic cars. Their performance determines the range and thus the acceptability of the vehicles. An adequate supply is essential for the rapid expansion of electric mobility.

With information from Franka Welz, ARD Studio Madrid.