VW raises EV investment in Spain to 10 billion euros

Sagunto (Reuters), Spain-German car maker Volkswagen AG and its partners have invested 10 billion euros ($ 10.6 billion) Electric car When battery In Spain, its CEO said Thursday. This is € 3 billion more than previously committed.

The company also announced a partnership agreement with Spain’s largest electricity company, Iberdrola. The partnership will create a solar park that will partially power the battery plant to be built in Sagunto, near Valencia.

Iberdrola will invest € 500 million in the electrification program, CEO Ignacio Sanchez Galan told reporters without giving details.

Volkswagen said in March that it would invest € 7 billion to build battery plants at two Spanish car plants to produce electric vehicles, but CEO Herbert Diess said with the addition of a new partner. He said the number was raised to 10 billion.

“We have the second largest car producer in Europe (Spain) with the new Giga Factory battery. Electric car At an event in Sagunto, Dies said he added a plan to “build a complete ecosystem of suppliers, from lithium extraction to battery assembly.”

Dís spoke with Spanish Prime Minister Pedro Sanchez when he visited the site where the factory would be built.

Volkswagen will begin construction of a 40GWh (GWh) plant in the first quarter of 2023 and aims to begin mass production by 2026. By 2030, the company says the site will have more than 3,000 staff.

Spain, Europe’s largest automaker after Germany, launched a financing and grant bidding process of around € 3 billion last month to boost the production of electric vehicles (EVs). Volkswagen and its Spanish unit SEAT have offered a bid.

Winners of the PERTE Fund will be selected this year due to the known program consisting primarily of the European Union’s Pandemic Relief Fund.

The company will invest € 3 billion in its Sagunto plant and an additional € 3 billion in four SEAT plants, including the Martrel plant near Barcelona. 1 One billion in Pamplona, ​​it said.

Volkswagen’s Spanish brand, Seat, does not currently sell electric vehicles (Mii electric city vehicles are sold out).

($ 1 = 0.9463 euros)

(Report by Emma Pinedo, additional report by Christoph Steitz, edited by Bernadette Baum and Edmund Blair)

VW raises EV investment in Spain to 10 billion euros

Source link VW raises EV investment in Spain to 10 billion euros

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