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Volkswagen is increasing its investment in Spain

The German carmaker Volkswagen is investing €10 billion with its partners in the production of electric cars and batteries in Spain.

Aware of the current direction of the entire automotive industry, Volkswagen is increasingly focusing on electromobility. The company has previously signed up to the Paris Climate Agreement and has set itself the goal of becoming a CO₂ neutral company by 2050.

They see the way in electromobility

Volkswagen said in March that it would invest €7 billion in the battery plant and the production of electric vehicles in two factories in Spain. This figure has now risen to €10 billion, as new partners have come on board. The plan is to create a complete ecosystem of suppliers in Spain, from lithium mining to battery assembly.

The company also announced a partnership agreement with Spain’s largest energy company, Iberdrola. This partner will set up a solar park that will supply part of the energy to a battery factory Volkswagen will build in Sagunto, a municipality near Valencia.

Volkswagen said in March that it would invest €7 billion in the battery plant and the production of electric vehicles in two factories in Spain. This figure has now risen to €10 billion, as new partners have come on board. The plan is to create a complete ecosystem of suppliers in Spain, from lithium mining to battery assembly.

The German carmaker plans to start construction of a 40 gigawatt-hour (GWh) battery factory in the first quarter of next year. It plans to start mass production by 2026. By 2030, the battery plant should have more than 3,000 employees.

Volkswagen is charged at a charging station

Spain supports the automotive industry

Spain is Europe’s second-largest car manufacturer after Germany. Last month, the country launched a tender for loans and subsidies totaling around €3 billion to boost electric car production. Volkswagen and its Spanish division SEAT have also submitted bids. The recipients of the money from the program, called PERTE, are due to be decided this year.

Read also: Fed declares war on inflation and raises interest rates

Volkswagen plans to build a total of 6 battery factories in Europe by the end of the decade. We have also informed you of Renault’s plans for this sector. Tesla’s plans for its gigafactories are also huge for the future. From all these steps, we can see that electromobility is indeed a huge topic and almost all car companies are adapting to this trend.

Bruno is an Investment enthusiast with several years of experience in the industry. He enjoys following the latest news and technology trends...

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