German car manufacturer Volkswagen AG and partners will inject a whopping EUR 10 billion (USD 10.50 billion) to fabricate electric vehicles and batteries in Spain, the former’s chief executive stated on Thursday (5th May 2022). This implies that the investment is EUR 3 billion (USD 3.15 billion) extra than the carmaker had previously committed.
Volkswagen AG injects EV investment in Spain
Volkswagen AG also declared a collaborative deal with Iberdrola, Spain’s most significant power utility, which will establish a solar part to partially power the battery facility to be formed within the municipality of Sagunto (close to Valencia).
The Chief Executive Officer of Iberdrola, Ignacio Sanchez Galan, told reporters that the firm would inject EUR 500 million (USD 524.78 million) into the electrification strategy without giving any excess details.
Volkswagen AG stated in March 2022 that it would invest EUR 7 billion (USD 7.35 billion) to fabricate a battery plant and generate electric vehicles at its two-car factories in Spain. However, Chief Executive Officer Herbert Diess stated that the figure had been augmented to 10 billion with new-fangled partners.
At a Sagunto event, Chief Executive Officer Herbert Diess stated that the firm would electrify the second-biggest car manufacturer in Europe (Spain) with a new-fangled giga-factory of batteries and manufacturing electric cars within two plants. Diess further elucidated that the strategy was to construct a comprehensive ecosystem of suppliers, from lithium extraction to the fabrication of batteries.
Herbert Diess chatted with Spanish Prime Minister Pedro Sanchez during a visit to the site where the factory was to be fabricated.
Volkswagen AG strives to begin the fabricated 40-gigawatt-hour (GWh) plant in Q1 of 2023, with serial production to begin by 2026. By 2030, the site will hire over 3,000 staff, the firm stated.
Spain is Europe’s most colossal carmaker after Germany. The former launched a bidding procedure in April 2022 for approximately EUR 3 billion (USD 3.15 billion) in grants and loans to uplift electric vehicle (EV) production. Volkswagen AG and its Spanish unit SEAT have introduced a bid.
The firm will inject EUR 3 billion (USD 3.15 billion) into the plant in Sagunto, with an additional EUR 3 billion (USD 3.15 billion) in four SEAT factories, inclusive of the adjacent Martorell plant Barcelona, and 1 billion in Pamplona, it stated.
Volkswagen AG’s Spanish wing – SEAT, presently does not retail an electric vehicle. As a result, its Mii electric car has been sold out.