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Released March 27, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--German car giant Volkswagen AG (VW) (Wolfsburg, Germany) has given the green light to start construction on its second European electric vehicle (EV) battery cell plant in Valencia, Spain.
Gigaplant Valencia is the company's second battery plant after Saltzgitter in Germany where construction is already underway. It will be developed by PowerCo, VW's dedicated battery business formed last July to manage the entire battery chain from the supply of raw materials through to the development of battery technology and the construction and operation of gigafactories. By 2030, PowerCo and partners are expected to generate annual revenue of more than 20 billion euro (US$21.5 billion) for VW. In addition to Valencia, PowerCo has also revealed plans to build its first battery plant outside of Europe in St. Thomas in Ontario, Canada. In total, Volkswagen plans to build six gigafactories in Europe with an annual capacity of 240 gigawatt-hours (GWh) with partners.
VW has just announced that over the next five years it will invest 180 billion euro (US$193 billion) to accelerate its transition to EVs and expand its presence in North America and China. Two-thirds of the budget will be invested in producing battery cells, developing software and building supply chains of critical raw materials. By 2025, it expects one in every five of its vehicles sold to be electric. The Valencia cell factory is being built over an area of 130 hectares in Sagunto, near Valencia, while a planned supplier park, which will be built parallel to the factory, will bring the size of the site to 200 hectares. The annual production capacity is initially 40 GWh but has the potential to be expanded to 60 GWh in the future. The plant, like the one in Saltzgitter, and the planned Canadian plant, will be 100% powered by renewable electricity. Production is expected to start in 2026 and at full capacity will directly employ 3,000 people and support another 30,000 indirect jobs, according to VW. It will supply unified cells to the vehicle plants owned by VW and its SEAT brands, with the Martorell and Pamplona factories set to be overhauled for EV production.
Spanish President Pedro Sánchez welcomed the announcement: "The factory that will be built here exemplifies the Spanish Government's commitment to innovation and sustainable mobility."
Thomas Schmall, chairman of the supervisory board of PowerCo SE, added: "We are moving into the fast lane with PowerCo. We have just broken ground for PowerCo's second gigafactory in Valencia, and are already making the next step with the announcement of another gigafactory in St. Thomas, Canada. Our objective is to make PowerCo a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. Gigafactory Valencia is an important milestone in that."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Gigaplant Valencia is the company's second battery plant after Saltzgitter in Germany where construction is already underway. It will be developed by PowerCo, VW's dedicated battery business formed last July to manage the entire battery chain from the supply of raw materials through to the development of battery technology and the construction and operation of gigafactories. By 2030, PowerCo and partners are expected to generate annual revenue of more than 20 billion euro (US$21.5 billion) for VW. In addition to Valencia, PowerCo has also revealed plans to build its first battery plant outside of Europe in St. Thomas in Ontario, Canada. In total, Volkswagen plans to build six gigafactories in Europe with an annual capacity of 240 gigawatt-hours (GWh) with partners.
VW has just announced that over the next five years it will invest 180 billion euro (US$193 billion) to accelerate its transition to EVs and expand its presence in North America and China. Two-thirds of the budget will be invested in producing battery cells, developing software and building supply chains of critical raw materials. By 2025, it expects one in every five of its vehicles sold to be electric. The Valencia cell factory is being built over an area of 130 hectares in Sagunto, near Valencia, while a planned supplier park, which will be built parallel to the factory, will bring the size of the site to 200 hectares. The annual production capacity is initially 40 GWh but has the potential to be expanded to 60 GWh in the future. The plant, like the one in Saltzgitter, and the planned Canadian plant, will be 100% powered by renewable electricity. Production is expected to start in 2026 and at full capacity will directly employ 3,000 people and support another 30,000 indirect jobs, according to VW. It will supply unified cells to the vehicle plants owned by VW and its SEAT brands, with the Martorell and Pamplona factories set to be overhauled for EV production.
Spanish President Pedro Sánchez welcomed the announcement: "The factory that will be built here exemplifies the Spanish Government's commitment to innovation and sustainable mobility."
Thomas Schmall, chairman of the supervisory board of PowerCo SE, added: "We are moving into the fast lane with PowerCo. We have just broken ground for PowerCo's second gigafactory in Valencia, and are already making the next step with the announcement of another gigafactory in St. Thomas, Canada. Our objective is to make PowerCo a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. Gigafactory Valencia is an important milestone in that."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
