VW confirms new battery cell plant to be built in Spain

The Valencia region in Spain has been chosen as the next factory location for the VW Group's European battery cell network, reported dpa.

The carmaker announced on Wednesday that a plant with more than 3,000 employees is to open in Sagunto in 2026. The city is located about 300 kilometres south-west of Martorell, where VW subsidiary Seat has its headquarters.

The new cell factory will also supply Seat's vehicle plant in Pamplona. The VW battery division PowerCo has now set up a branch in the centre of Valencia, and will coordinate its activities in Spain from there.

The project was announced in principle last spring, but Volkswagen wanted to gauge the level of political support before making a final decision.

It is reported that some €10 billion ($10.9 billion) are to be invested in the project as a whole.

For the battery cell production itself, VW is aiming for 40 gigawatt hours of electrical energy per year.

The Sagunto site is to be powered by renewable electricity. The group has already started to recruit skilled workers.