Valencia poised to host a Volkswagen group gigafactory for electric car batteries
Alfonso Sancha, the vice president of acquisitions at Seat, announced on Friday that the Volkswagen group plans to build a battery gigafactory in Sagunt to supply its electric vehicle fleet. This would become the largest battery production facility within the Volkswagen umbrella in Europe. Sancha outlined the project before 250 representatives from local firms gathered by the Valencian Community Business Confederation (CEV), inviting regional suppliers to participate in the venture. He described the aim as creating a Valencia-based electric battery hub, with the German automotive giant looking to become a distinctly Valencian company through the involvement of local suppliers.
With production scheduled to begin in 2026, Sancha noted the early appreciation shown by Generalitat President Ximo Puig during their first meeting. He asserted that the Valencia project is intended to be the group’s premier battery gigafactory in Europe and the largest among six planned facilities. The Sagunt site would, according to Seat, produce battery cells capable of powering around 800,000 vehicles each year, drawing on existing Volkswagen plants in Navarra, Barcelona, and Landaben in Martorell. Sancha stressed that the facility would be designed to endure through future advances in battery technology, ensuring it does not become quickly obsolete. The cells are expected to use cobalt and nickel-manganese-cobalt (NMC) chemistry, yet the plant will remain adaptable to accommodate forthcoming chemical innovations.
Sancha underscored the desire of Valencia’s business community to collaborate deeply rather than merely participate. Local companies are encouraged to become a core and lasting part of the regional economy, he explained, emphasizing a long-term commitment to the area: “We are here to stay.”
The president of the Generalitat highlighted the regional government’s focus on transforming the productive landscape and described Volkswagen’s arrival as a decisive milestone. Puig likened the project to Ford’s historical arrival in the region half a century ago, noting that the nearby Parc Sagunt II urbanization project is advancing with a development budget of 2.6 million euros, while the tender for its construction is being issued as part of the same momentum surrounding the battery project.
Salvador Navarro, president of the Valencian Employers Confederation, added that the battery factory is a crucial requirement for the local industrial base. He stressed the importance of the project in helping Valencian manufacturers reduce the gap with regional and international competitors and accelerate the region’s economic transformation.
The ambitious battery gigafactory proposal carries an estimated investment of around 3.5 billion euros, signaling a major commitment to electro-mobility and regional supply chain development. The plan envisions a facility not only capable of meeting current demand but also adaptable to emerging materials and production technologies that could shape the next generation of electric vehicle batteries.