PowerCo, a subsidiary of the Volkswagen Group dedicated to battery technology, has broken ground on its second gigafactory in Sagunto, Spain, with the presence of King Felipe VI of Spain, Pedro Sánchez, the country’s president, and Ximo Puig, president of the Valencian Generalitat. The Valencia gigafactory, which is expected to start production in 2026, is a core component of Volkswagen’s “NEW AUTO” strategy and will produce unified cells, contributing to the company’s goal of becoming a global player in the battery business.
The factory will initially have an annual production capacity of 40 GWh, which can be expanded to 60 GWh in the future, and will be supplied completely with green electricity generated by solar and wind power. The raw material cycle will be closed directly on the site of the cell factory, with a new 250-hectare solar farm in the immediate vicinity. The Valencia gigafactory will supply unified cells to the vehicle plants in Martorell and Pamplona, among others.
The gigafactory Valencia will be built over an area of around 130 hectares in Sagunto, with a potential to expand to 60 GWh in the future. PowerCo CEO Frank Blome said that the company stands for responsible conduct, including good working conditions, care for the environment, and sparing use of scarce resources. Blome added that the company aims to be a good neighbor to the people in the region and make a significant contribution to economic development. PowerCo plans to work with the regional government to initiate targeted projects aimed at strengthening science and society.
The factory is expected to directly employ over 3,000 people, and there is the potential for up to 30,000 indirect jobs to be created at suppliers and partners in Spain. The gigafactory Valencia is a productive alliance between PowerCo, the Generalitat, and the governments of Spain and Europe on the path towards a sustainable transition in mobility.
The gigafactory Valencia is a core component of the 10 billion euro investment program called “Future: Fast Forward,” which Volkswagen announced last year with PowerCo, its Spanish subsidiary SEAT S.A., and 49 partners. The investment program aims to electrify the car factories in Martorell and Pamplona as part of the PERTE program for electric and connected vehicles.
The Spanish President Pedro Sánchez said that the factory exemplifies the Spanish government’s commitment to innovation and sustainable mobility. The factory is a sign of Spain’s commitment to industry, as well as to the characteristics that define an entrepreneurial nation in the global market, such as innovation, territorial cohesion, and public-private cooperation. The President of the Generalitat Valenciana, Ximo Puig, thanked the Volkswagen Group and SEAT for their commitment to Sagunto and the Valencian community.
PowerCo’s gigafactory Valencia is an important milestone for the company and Volkswagen Group’s battery business. The company’s commitment to sustainability, renewable energy, and economic development is evident in the construction of the factory. The factory’s potential to create over 30,000 indirect jobs will also have a positive impact on the Valencian community. With the Valencia gigafactory, Volkswagen Group is taking a major step towards building a sustainable future.