VW Reveals Plans for Third Gigafactory in Europe

VW will establish its third gigafactory in Valencia, Spain, amid plans for six EV battery production hubs in Europe.Gigafactory Valencia is scheduled to launch in 2026 and feature an annual production capacity of 40 GWh.The Valencia hub is expected to serve Volkswagen’s SEAT and Cupra brands, focusing on southern Europe.Volkswagen reveals plans for a third gigafactory in Europe, following the launch of the Salzgitter, Germany EV hub. Dubbed Gigafactory Valencia, the battery plant is slated to launch in 2026 with an annual production capacity of 40 GWh, with an aim to produce components and vehicles for the VW Group, including the Spanish SEAT and Cupra brands. Gigafactory Valencia will be part of the Volkswagen Group’s Future Fast Forward program that will see a total investment of over €7 billion, representing what SEAT President Wayne Griffith calls “the largest industrial investment in Spanish history.” Related Story Cupra Born Will Be a Meaner-Looking ID.3 EV Hatch “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 €7 billion together with external suppliers for the electrification of our Martorell and Pamplona plants and the localization of the battery value chain in Valencia,” says Thomas Schmall, member of the Volkswagen AG Board of Management responsible for technology and chairman of the SEAT S.A. Board of Directors. Volkswagen’s Cupra brand offers the Born hatch, based closely on the VW ID.3. Volkswagen Plans for Gigafactory Valencia follow Volkswagen Group’s pick of Salzgitter, Germany, as its main center for research and development, as well as battery production in Europe. In 2021 the automaker announced a series of moves in Salzgitter, from the launch of a battery recycling pilot plant to a battery research laboratory, culminating in the formation of a separate company for EV battery production in December. Salzgitter’s transformation highlights VW Group’s electrification efforts, with the site set to officially launch in 2025 after the automaker announced plans to invest €2 billion there. Related Story Century-Old Paper Mill Will Become Gigafactory “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 sustainable battery production,” Schmall adds. “It will create a strong pulling effect in the whole battery value chain in Spain and beyond.”In total, Volkswagen plans to create six gigafactories in Europe for its various brands, and three of those locations have been announced so far. The gigafactories are expected to offer a combined annual capacity of 240 GWh, which will include contributions from Volkswagen’s partners such as Northvolt in Sweden. Construction of the Valencia plant is expected to start later this year. SIGN UP