Volkswagen Group's gigafactories: works start in Valencia, second European site

Volkswagen Group's gigafactories: works start in Valencia, second European site

The battery business plays a key role in the strategy of the Group, which with PowerCo – its battery company - has started construction of its second gigafactory near Valencia: here, the unified cell will be produced from 2026, with an initial production capacity of 40 GWh; more than 3,000 jobs will be created.

The Volkswagen Group has taken another step forward in building its global battery business with the laying of the foundation stone and the start of construction works for Gigafactory Valencia. The Spanish site will be the Group's third gigafactory, following the one in Salzgitter (currently under construction) and the one to be built in Canada.

The new plants are to be managed by PowerCo, the Volkswagen Group’s company bundling all the activities related to the battery business. Gigafactory Valencia will start production of the unified cell in 2026, creating more than 3,000 jobs, with a further up to 30,000 people employed in the supply chain. Construction started in the presence of His Majesty King Felipe VI, Spanish Prime Minister Pedro Sánchez, and Ximo Puig, President of the Generalitat Valenciana.


Wayne Griffiths, CEO of SEAT and CUPRA, and Felipe VI, His Majesty the King of Spain

NEW AUTO and PowerCo

Batteries are a core element of the Volkswagen Group's strategy, which has established PowerCo specifically to manage the global battery business along the entire value chain: from raw material supply and development to the construction and operation of gigafactories.

By 2030, PowerCo and its partners are expected to generate annual revenue of over 20 billion euros. "With PowerCo, we are moving into the fast lane; our goal is to make it a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. In that, Gigafactory Valencia is a milestone," said Thomas Schmall, Board of Management Member of the Volkswagen Group with responsibility for Technology and Chairman of the Supervisory Board of PowerCo SE.

Economic Development

"Like the Volkswagen Group, PowerCo stands for responsible conduct. That includes good working conditions, care for the environment, and prudent management of resources. We want to be a good 'neighbor' to the people in the region and make a significant contribution to economic development. We also intend to work with the regional government to initiate projects to initiate targeted projects aimed at strengthening science and society", added Frank Blome, CEO of PowerCo.

The Valencia gigafactory will have an initial annual production capacity of 40 GWh, which can be expanded to 60 GWh in the future. It will rise in Sagunto, near Valencia, on an area of about 130 hectares, which becomes 200 hectares when considering the planned supplier park that will be built at the same time.


PowerCo's gigafactory in Sagunto near Valencia, Spain

Green energy

This area of Spain was chosen because of the availability of low-cost green electricity, the presence of a regional research and innovation cluster, as well as the good transportation infrastructure and proximity to the Volkswagen Group's Spanish production sites.

The Valencia gigafactory will supply unified cells to the Martorell and Pamplona plants, among others, and will be supplied completely with electricity from renewable sources, such as wind and solar, for example, thanks to the new 250-hectare solar park that will be built in the immediate vicinity. The raw material cycle will be closed directly on the site of the cell factory.

Future: Fast Forward

Gigafactory Valencia is a key part of Future: Fast Forward, the 10 billion euro investment program that the Volkswagen Group announced last year together with PowerCo, SEAT S.A. and 49 other partners. The plan calls for the complete electrification of the Martorell and Pamplona factories as part of the PERTE VEC program - the Strategic Projects for Recovery and Economic Transformation Electric and Connected Vehicles section of the Spanish Ministry of Industry - for the production of 100% electric vehicles.

Source: Volkswagen Newsroom

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