It is reported that Volkswagen and its partners are ready to invest 10 billion euros (about 70 billion yuan) to produce electric vehicles and batteries in Spain, 3 billion euros more than previously promised. Volkswagen has reached a cooperation with Iberdrola, Spain's largest power company, to build a battery plant in sagundo near Valencia, and Iberdrola will build a solar power plant to provide part of the power for the battery plant. Iberdrola CEO Ignacio Sanchez Galan told reporters that the company will invest 500 million euros (about 3.5 billion yuan) in this plan.
In March this year, Volkswagen said it would invest 7 billion euros (about 49 billion yuan) to build a battery plant in Spain. It has two electric vehicle plants in Xiban. Later, with new partners, the investment increased to 10 billion euros.
Herbert diess, CEO of Volkswagen, said: "Spain is the second largest automobile manufacturer base in Europe. We will realize electrification there and build a new battery factory there to make electric vehicles in two factories." He said Volkswagen's plan is to build a complete supplier ecosystem, from lithium extraction to battery module production.
According to Volkswagen's plan, the battery plant will be built in the first quarter of 2023, with a scale of 40gwh, and mass production will begin in 2026. By 2030, the battery factory will employ more than 3000 employees.
Spain, the second largest European automobile manufacturing base after Germany, launched a bidding process last month to provide 3 billion euros in loans and grants to stimulate the production of electric vehicles. Volkswagen and its Spanish subsidiary seat bid.
In order to stimulate economic development and mitigate the impact of the epidemic, the EU has set up a project called "economic transformation and rehabilitation strategic plan" (perte). Spain's electric vehicle stimulus plan is mostly part of the project, and it will select the bidding winner this year.
Volkswagen plans to invest 3 billion euros in sagonto plant, 3 billion euros in four other seat plants and 1 billion euros in Pamplona plant.