VW's PowerCo Begins Construction of Second Spanish EV Battery Gigafactory

Volkswagen Group's PowerCo SE has started building its second EV battery gigafactory in Spain. The annual production capacity is initially 40 GWh, but has the potential to be expanded to 60 GWh in the future.

The cell factory is being built over an area of around 130 hectares in Valencia.

The gigafactory will supply unified cells to the vehicle plants in Martorell and Pamplona, among others.

 It will be supplied completely with green electricity generated by solar and wind power.

Since its launch in July 2022, PowerCo has decided on three sites for its cell factories: Salzgitter, Valencia and St. Thomas in Ontario/Canada, two of them already under construction.

Thomas Schmall, Board of Management member responsible for Group Technology and Chairman of the Supervisory Board of PowerCo SE, says: “We are moving into the fast lane with PowerCo. We have just broken ground for PowerCo’s second gigafactory in Valencia, and are already making the next step with the announcement of another gigafactory in St. Thomas, Canada. Our objective is to make PowerCo a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. The gigafactory Valencia is an important milestone in that.”

Frank Blome, CEO of PowerCo, adds: “Like the Volkswagen Group, PowerCo stands for responsible conduct. That includes good working conditions, care for the environment and sparing use of scarce resources. We want to be a good neighbour to the people in the region and make a significant contribution to economic development. Not only will we create more than 3,000 jobs of the future, but we also intend to work with the regional government to initiate targeted projects aimed at strengthening science and society.”

PowerCo bundles the Volkswagen Group’s global battery business throughout the value chain – from raw material supply and development to the construction and operation of gigafactories.