PowerCosubsidiary of the Volkswagen Group, engaged in activities related to batteries for electric vehicles, has laid the first stone of its the second site for the production of batteries, located in the region of Valencia, Spain. King Philip VI of Spain, Prime Minister of Spain Pedro Sánchez, as well as President of the Generalitat of Valencia Ximo Puch were present on this occasion.

“We just broke ground on PowerCo’s second gigafactory in Valencia, and we’re taking it one step further by announcing the construction of another gigafactory in St. Thomas, Canada. Our goal is to make PowerCo a global player in battery manufacturing and to pave the way for better mobility with sustainably produced battery cells. The Gigafactory in Valencia is an important milestone on this path.”Oliver Blum, Chairman of the Board of the Volkswagen Group and Chairman of the Supervisory Board of PowerCo, said on this occasion.

Volkswagen: sustainable battery production in Spain

This giant battery plant is currently being built on 200 hectares of land located in the village of Sagunto, near Valencia : this PowerCo site will have an annual production capacity of 40 GWh, but the company plans to increase it to 60 GWh. In addition to the plant, which will occupy about 130 hectares, PowerCo will also create a business park there to accommodate the site’s suppliers.

The choice of the Valencia region was motivated by the availability of environmentally friendly electricity at a low price, the presence of a regional center for research and innovation, a high-quality transport network, as well as the proximity to other production sites of the Volkswagen Group in Spain. Thus, the gigafactory in Valencia will supply unified battery cells at the Volkswagen plants in Martorella and Navarre (Pamplona).

The PowerCo plant in Valance aims to produce long-lasting batteries : indeed, thanks to a 250-hectare solar power plant located nearby, it will be entirely powered by green electricity generated from solar and wind energy. At the factory site, raw materials will be used in a circular model in a closed cycle.

Volkswagen Gigafactory: inauguration is planned for 2026

The first sustainable unified cells will be produced at the Spanish plant in Sagunto (Valencia) from 2026. The site is part of an ambitious €10 billion investment program unveiled last year by the German group.

As part of this program, Volkswagen also plans to transform its car factories in Martorell and Pamplona so that they can produce electric cars for the Seat and Cupra brands, not to mention the Volkswagen ID. and Audi.

PowerCo will be responsible for the global activities of the Volkswagen group in the field of batteries: the supply of raw materials, the development of batteries, as well as the construction and operation of gigafactories. This is a strategic activity for the German manufacturer, which should generate an annual turnover of more than 20 billion euros by 2030.