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Volkswagen bets on Spain: the Sagunto battery gigafactory will have 50% more capacity

PowerCo, the battery division of the Volkswagen Group, has started construction today on its second European gigafactory in Sagunto (Valencia). During the event, which was attended by King Felipe VI, the President of the Government, Pedro Sánchez, and Ximo Puig, President of the Generalitat Valenciana, some hitherto unknown details of the project were revealed.

The facilities will begin to assemble cells in 2026 and will directly employ more than 3,000 people; In addition, they will generate up to 30,000 indirect jobs. The energy used will be 100% renewable and will come in part from a new 250-hectare solar park located nearby. The raw materials used during the production process will be recycled directly in the factory itself.

Its maximum capacity was initially expected to be 40 GWh annually, but PowerCo has just confirmed that in the future it could expand to 60 GWh, 50% more than expected. This change of plans could be due to Volkswagen’s decision to divert part of its investments to the construction of other gigafactories in North America, which would benefit Sagunto.

Although it sounds contradictory, we must remember that the company originally planned to build six plants in Europe, each of 40 GWh. However, everything seems to indicate that finally will concentrate its resources in three locations (Germany, Spain and Sweden) that could see their capacity increased. “With these three plants we are covered until 2028”declared recently Thomas Schmall, Head of Technology of the Executive Committee of the Volkswagen Group and Chairman of the Supervisory Board of PowerCo.

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Sagunto will become a key piece for Volkswagen

The manager claims that «we are moving very quickly with PowerCo. We have just started the construction of the second gigafactory […] in Valencia, and we are already taking the next step with the announcement of another gigafactory in St. Thomas, Canada. Our goal is to make PowerCo a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. The gigafactory in Valencia is an important milestone in this regard”.

«The factory that will be built here exemplifies the commitment of the Government of Spain for innovation and sustainable mobility. It is a sign of our commitment to the industry, but also to the characteristics that define an entrepreneurial nation in the global market: innovation, territorial cohesion, and public-private cooperation.”Sánchez wanted to point out for his part.

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