PowerCo To Begin Construction of The Second Volkswagen Cell Factory In Valencia
Photo credit: Volkswagen
The construction of the new battery business PowerCo SE continues to grow. The construction of their second factory in Valencia already approved, this second factory will manufacture cells in Powerco, at the inauguration will be present His Majesty King Felipe VI, the President of Spain, Pedro Sanchez, and Xiomo Puig, President of the Generalitat of Valencia. The Puig unified cell production will start production in 2026 where job opportunities for more than 3,000 people are planned to be offered in the future. Battery technology becomes an important element of the new Volkswagen Group’s NEW AUTO strategy. Since the PowerCo Launch in 2022, the company has chosen three different locations for the construction of cell factories among which one will be located in Salzgitter.
“The factory to be built here exemplifies the Spanish Government’s commitment to innovation and sustainable mobility. It is a sign of our commitment to the industry, but also to the characteristics that define an entrepreneurial nation in the global market: innovation, territorial cohesion, and public-private cooperation,” announced Spain’s President Pedro Sánchez.
Gigafactory Valencia already boasts an annual capacity to generate 40 GWh and has great potential as an expansion to 60 GWh is possible. This cell factory is already under construction and will have 140 hectares of surface area; its location is in the vicinity of Valencia. The main factors that influenced the construction of the cell factory in Valencia are the availability of low-cost green electricity, the regional cost of research and innovation, and the proximity to Volkswagen’s Spanish production sites. PowerCo’s main objective is to carry out battery manufacturing in Valencia. The factory to be built in Valencia will obtain its energy through solar and wind power, installing a 250-hectare solar farm.
“We are moving on the fast track with PowerCo. We have just started construction of PowerCo’s second gigafactory in Valencia and are already taking the next step with the announcement of another gigafactory in St. Thomas, Canada. Our goal is to make PowerCo a global player in the battery business and pave the way for better mobility with sustainably manufactured battery cells. The Valencia Gigafactory is an important milestone in that,” announced Thomas Schmall, Member of the Board of Management responsible for Group Technology and Chairman of the Supervisory Board of PowerCo SE.
The Gigafactory Valencia is one of the most important pillars of the 10 billion investment program for the electrification of Spain called “Future: Fast Forward”, announced by Volkswagen last year together with PowerCo. PowerCo is part of the Volkswagen Group’s global battery business collaborating in the supply and development of raw materials through to the construction and operation of gigafactories. PowerCo aims to generate 20 billion euros together with its partners by early 2030.
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