Volkswagen Group and SEAT reveal electrification plan for Spain
Electrifying Spain by creating a European Electric Vehicle Hub, building up a battery cell production and full, sustainable E-ecosystem:
These are the goals of Volkswagen Group and SEAT for the Iberian Peninsula. Today, the Group declared its plan to apply to the Electric Vehicle PERTE program after the Spanish government announced to open the call for applications on April 1st, 2022.
The ‘Future Fast Forward’ program would include a total investment of more than 7 billion euros together with external suppliers along the entire value chain of e-mobility.
Furthermore, Volkswagen announced Valencia as the dedicated location for a new battery cell factory in Spain. All plans are still subject to final approvals, foremost the PERTE submission.
“This project is highly important – for Volkswagen, for Spain, and for the whole of Europe. It’s our ambition to electrify Spain and we are willing to invest more than seven billion euro together with external suppliers for the electrification of our Martorell and Pamplona plants and the localization of the battery value chain in Valencia", said Thomas Schmall, member of the Volkswagen AG Board of Management responsible for Technology and chairman of the SEAT S.A. Board of Directors.
“‘Future Fast Forward’ has the potential to transform the Spanish automotive industry and democratize electric mobility across Europe. The more than 7 billion euros Volkswagen Group and SEAT S.A. would mobilize for Future: Fast Forward would represent the largest industrial investment in Spanish history”, said Wayne Griffith, president of SEAT.
Gigafactory Valencia would be Volkswagen’s second location after Salzgitter and the first one outside of Germany. “In Valencia, we are planning to build up nothing less than next-generation cell production: A standardized factory, producing Volkswagen’s cutting-edge unified cell and supplied with renewable energy, enabling a sustainable battery production. It will create a strong pulling effect in the whole battery value chain in Spain and beyond”, said Schmall.
The selection process was tough and Valencia emerged as the strongest location based on more than 100 criteria such as qualified workforce, public support, good logistic connections and green energy.
Volkswagen aims for a production capacity of 40 GWh annually and plans to employ more than 3,000 people in Valencia.
The timeline is tight: To be ready to start production in 2026, construction of the plant should begin by the end of the year. The first milestone must be the positive outcome of the PERTE submission and finalized permits.
Thomas Schmall: “Transforming an entire industry is a huge challenge. To be competitive in the new electric world, we now have to raise productivity in our Spanish car production. And we need to qualify many of our people for new tasks, including battery development and production.
This calls for a lot of flexibility by everyone and a possible change of jobs. But the important news is:
The overall effect on employment will be positive – despite the faster assembly times in the electric car manufacturing. If we do it right and get the right support by the Spanish government, we will be able to create additional jobs in this transition for Spain.”
In total, Volkswagen plans to build six Gigafactories in Europe with an annual capacity of 240 GWh together with partners. The group’s demand for premium cells will be met by Northvolt in Skellefteå, Sweden.
To speed up the roll-out of all further cell factories coming up for Europe, Volkswagen has founded a European corporation for cell development and manufacturing and keeps the option open to integrate partners or investors.
Its center of gravity – and a blueprint for all following plants – will be the Salzgitter plant in Germany starting production in 2025.
Volkswagen Group and SEAT S.A. to mobilize 10 billion euros to electrify Spain
It will represent the single largest industrial investment in Spain's history
Construction of the first battery Gigafactory in Spain will begin in the first quarter of 2023 and will create more than 3,000 jobs
Thanks to an agreement with Iberdrola, a photovoltaic plant that will supply green energy to the Gigafactory will be built
The Volkswagen Group and SEAT S.A. will mobilize 10 billion euros, together with their partners in the Future: Fast Forward project, in the event of a positive resolution of the PERTE VEC.
This was announced today by Herbert Diess, CEO of the Volkswagen Group, who visited the Parc Sagunt II site, together with Pedro Sánchez, Prime Minister of Spain; Ximo Puig, President of the Valencian Generalitat; Wayne Griffiths, President of SEAT S.A.; and Thomas Schmall, Member of the Board of Management of Volkswagen AG, Chief Technology Officer and Chairman of the Board of SEAT S.A.
“This investment of 10 billion euros will electrify Spain and Europe's second-largest automotive manufacturer, creating a battery Gigafactory in Sagunto, enabling the production of electric vehicles at the Martorell and Pamplona plants, and building-up a comprehensive supplier ecosystem. This is the biggest industrial investment ever made in Spain”, said Herbert Diess, CEO of the Volkswagen Group.
The meeting took place in Parc Sagunt II (Valencia) where the Volkswagen Group will locate the country’s first Gigafactory.
The construction of this battery plant is one of the main projects included in Future: Fast Forward. Yesterday, the 62 national and international companies and benchmark firms that form the project applied to the Strategic Project for Economic Recovery and Transformation program (in Spanish, PERTE) for the Electric and Connected Vehicle (in Spanish, VEC).
“The Volkswagen Group, SEAT S.A. and the Spanish Government share a vision: to make Spain a European hub for electric mobility. We are ready to initiate this transformation. The PERTE serves as a model for the whole of Spain on how traditional industrial structures can be transformed”, added Diess.
The Gigafactory will have an annual production capacity of 40 GWh, supplying the total volume of cells to Martorell and Pamplona. It will employ more than 3,000 people by 2030 and occupy an area of 200 hectares. Construction of the Gigafactory will begin in the first quarter of 2023, and production will start in 2026.
The first milestone must be the positive outcome of the PERTE submission and the finalisation of the permits: “We will build the battery Gigafactory with an investment of more than 3 billion euros, but the PERTE funds are essential if we are to realise our ambition of turning Spain into a European hub for electric vehicles”, said Thomas Schmall.
“The battery factory in Sagunto will occupy a 200-hectare site and will be the third of six Gigafactories the Group plans to build across Europe. For our battery ramp-up in Spain and Europe, sustainability and a closed value chain loop are key.
To name a few aspects: with the electricity to supply the Gigafactory coming 100 percent from renewable energies, with a local-for-local approach and by recovering valuable raw materials on site, our new factory in Valencia will be a blueprint for circular economy”, Schmall said.
Agreement with Iberdrola to build a photovoltaic plant
As part of the event held today, the Volkswagen Group and Iberdrola Group signed a strategic agreement that will allow the construction of a photovoltaic plant in Sagunto to supply the Gigafactory with green energy.
The solar plant will cover 250 hectares and will be located less than 10 kilometres from the battery factory. In the first phase, it will provide 20% of the Gigafactory’s total energy.
SEAT S.A. is the only company that designs, develops, manufactures and markets cars in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell (Barcelona), sells vehicles under the CUPRA and SEAT brands, while SEAT MÓ is the business unit that covers urban mobility products and solutions.
SEAT S.A. exports more than 80% of its vehicles and is present in 75 countries. The company employs over 15,000 professionals and has three production centres – Barcelona, El Prat de Llobregat and Martorell, where it manufactures the SEAT Ibiza, SEAT Arona, Leon family and the CUPRA Formentor. Additionally, SEAT S.A. produces the CUPRA Born and the SEAT Tarraco in Germany, the Ateca in the Czech Republic and the SEAT Alhambra in Portugal. The company also has the SEAT CODE software development centre, located in Barcelona.
SEAT S.A. will invest 5 billion euros through to 2025 to develop new models for the two commercial brands, SEAT and CUPRA, and to electrify the range. The company aims to play a relevant role in the electrification of urban electric vehicles, with a special focus on the transformation of the Spanish automotive industry.
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