Volkswagen Group and SEAT reveal electrification plan for Spain

24 March 2022, 03:29:06

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.

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 Thomas Schmall, member of the Volkswagen AG Board of Management responsible for Technology and chairman of the SEAT S.A. Board of Directors. “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"

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.

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.

News related to Volkswagen or SEAT

Volkswagen has opened a new chapter in the 50‑year history of its iconic GTI badge with the world premiere of the all‑new, fully electric ID. Polo GTI. Revealed at the 24‑hour race at the Nürburgring, the near‑production concept marks the first time the GTI formula has been applied to an electric small car - combining instant torque, compact dimensions, and unmistakable GTI character. At the heart of the ID. Polo...

18 May 2026

Volkswagen has lifted the curtain on the all‑new ID. Polo, marking a decisive moment for one of the brand's most iconic nameplates. After more than 20 million units sold, the Polo enters the electric era with a clean-sheet redesign, a new front‑wheel‑drive architecture, and a focus on efficiency, space, and accessibility. Developed in Wolfsburg, the ID. Polo arrives as a compact EV with the proportions, technology...

30 April 2026

Volkswagen has officially premiered the ID.3 Neo, a comprehensively upgraded successor to the original ID.3 that introduces a new name, a redesigned exterior, a more refined interior, and a suite of advanced technologies. The model marks a significant evolution of Volkswagen's electric compact strategy, combining improved efficiency with a more mature design language and enhanced digital functionality. Revealed...

16 April 2026

Volkswagen is gearing up for the European debut of the ID. Cross, a compact electric five‑seater set to arrive in autumn 2026 with a starting price of around 28,000 euros. Designed for customers seeking practical, everyday electric mobility at an accessible price point, the model is already drawing attention as it appears in Amsterdam wrapped in eye‑catching camouflage. The ID. Cross introduces Volkswagen's new Pure...

16 March 2026

The Volkswagen Group has reached a major milestone in its transition toward electric mobility, announcing the production of five million electric drive units across its global manufacturing network. The achievement reflects the growing strength of the Group's technology and production alliance, with plants in Győr, Kassel, Tianjin and Zuffenhausen contributing to the rapid scale-up. Volkswagen Group Components...

9 February 2026

Volkswagen has unveiled the interior of the all‑new ID. Polo, offering the first detailed look at a cockpit concept that will shape the brand’s future electric models. The company describes the redesign as a holistic, customer‑driven approach focused on clarity, quality and intuitive operation. Alongside the new hardware layout, a next‑generation software platform introduces additional functions, while a playful...

3 January 2026

Volkswagen's battery unit PowerCo has begun producing the first "Unified Cells" at its Salzgitter gigafactory, marking the start of large‑scale European battery cell manufacturing and a major step in the group's electrification strategy. The plant is VW's blueprint for future facilities across the continent and as a central element of the brand's ambition to control key technologies in‑house. PowerCo will use the...

17 December 2025

Volkswagen is preparing to reinvent one of its most iconic bestsellers with the upcoming ID. Polo, a fully electric small car that blends the brand's heritage with its future ambitions. Just months before its official debut, fleets of near-production prototypes are undergoing final testing across multiple regions worldwide, showcasing the company's commitment to delivering a new era of accessible e-mobility. The ID...

15 December 2025

At IAA Mobility 2025, Volkswagen showcases a streamlined model range, including four electric cars in the small car and compact segment, which will be gradually launched onto the market from 2026. In addition to the new ID. Polo and ID. Polo GTI, which will still be camouflaged for their appearance at the IAA, the new ID. CROSS Concept – a near-production-ready compact SUV concept vehicle – will also make its debut...

8 September 2025

At IAA Mobility next week, Volkswagen will present the ID. CROSS Concept - a vehicle equally suitable for the city and long journeys. Following the ID.2 all, the ID. GTI Concept (based on the ID.2 all) and the ID. EVERY1, the ID. CROSS Concept is the fourth small electric concept car. The production versions of these new Volkswagen models will be on the market from 2026. The world premiere of the new ID. Polo...

7 September 2025

Volkswagen and its three Chinese joint venture partners has unveiled three concept BEVs at the 2025 Auto Shanghai this week. The ID. AURA (from FAW-Volkswagen), the ID. ERA (from SAIC VOLKSWAGEN) and the ID. EVO (from Volkswagen Anhui) are representative of a new generation of smart electric vehicles and give a preview of the product strategy for the coming years. Volkswagen has also integrated the needs of Chinese...

24 April 2025

Volkswagen previewed the ID.EVERY1 - the concept car for an electric 20,000-euro Volkswagen from Europe for Europe. The ID. 2all will already be launched in the 25,000-euro class in 2026. Both models are part of the new Electric Urban Car Family with front-wheel drive, which is being developed on a cross-brand basis under the umbrella of the Brand Group Core – comprising the volume brands in the Volkswagen Group...

5 March 2025

At today's work meeting in Wolfsburg, Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand, presented plans for the future of the core brand. Employees also had a first glimpse of the design of the Volkswagen brand’s future entry-level electric model, which will cost about 20000 euros. Volkswagen plans to present the show car for the new entry-level model to the public at the beginning of March. The world...

6 February 2025

Volkswagen of America announced initial pricing for the 2025 ID.4. Production resumes at the Chattanooga factory with 82 kWh models, which carry a starting MSRP of $45,095 for the rear-wheel-drive Pro and $48,995 for the AWD Pro. Models with 62 kWh batteries will be available later, and all models will receive additional content starting midyear. Details and pricing on both will come at a later date. The trim...

5 February 2025