VW boosts EV investment in Spain to 10 billion euros

SAGUNTO, Spain (Reuters) -German carmaker Volkswagen AG and companions will devote €10 billion ($10.6 billion) to make electric powered vehicles and batteries in Spain, its chief executive explained on Thursday. That is 3 billion euros more than it experienced beforehand committed.

The enterprise also declared a partnership deal with Spain’s premier energy utility Iberdrola, which will set up a solar park to partly electricity the battery plant to be designed in the municipality of Sagunto around Valencia.

Iberdrola will invest 500 million euros in the electrification system, its Chief Executive Officer Ignacio Sanchez Galan explained to reporters, devoid of giving even more particulars.

Volkswagen explained in March it would spend 7 billion euros to create a battery plant and deliver electrical automobiles at its two car factories in Spain, but CEO Herbert Diess said that determine experienced been elevated to 10 billion with new associates on board.

“We will electrify the second-greatest auto producer in Europe (Spain) with a new giga-manufacturing unit of batteries and the output of electrical cars in two crops,” Diess informed an event in Sagunto, adding the approach was to make “a complete ecosystem of suppliers from lithium extraction to the assembly of batteries”.

Diess spoke through a take a look at with Spanish Primary Minister Pedro Sanchez to the web-site where by the manufacturing unit will be designed.

Volkswagen aims to start off setting up the 40-gigawatt-hour (GWh) plant in the very first quarter of 2023, with serial production to start out by 2026. By 2030, the site will hire much more than 3,000 personnel, the firm claimed.

Spain, Europe’s major carmaker immediately after Germany, past month introduced a bidding system for about 3 billion euros in financial loans and grants to endorse electrical auto (EV) generation. Volkswagen and its Spanish device SEAT have introduced a bid.

Winners of the PERTE money, as the plan that consists generally of European Union pandemic aid money is known, will be preferred this calendar year.

The firm will invest 3 billion euros in the plant in Sagunto, one more 3 billion euros in 4 SEAT factories, such as the Martorell plant around Barcelona, and 1 billion in Pamplona, it explained.

Volkswagen’s Spanish brand, Seat, at the moment does not offer an electric automobile (its Mii electric powered city car has marketed out). 

($1 = .9463 euros)

(Reporting by Emma Pinedo Extra reporting by Christoph Steitz Enhancing by Bernadette Baum and Edmund Blair)