electrification program
The Volkswagen group is planning to raise the output capacity of its battery gigafactory by about half, aiming to supply third parties and produce batteries for large electric vehicles. Company executives announced a major factory expansion, noting that an initial generation capacity of 40 GWh has already been largely consumed and signaling a potential increase to 60 GWh. Land has already been set aside for the expansion, with a multinational partner ready to supply the facility. Ford has shown interest in the Almussafes site, and if Volkswagen adopts the combined cell technology under development, that could shape the project for future collaborations with Ford and other manufacturers. (Attribution: Volkswagen Group communications)
Ciriaco Hidalgo, head of Government and Corporate Affairs for SEAT, spoke at a Madrid event organized by the PSOE about the new image of the Valencian Community, a gathering attended by Salvador Navarro, president of the CEV employers’ association. He noted that the gigafactory has nearly reached its initial 40 GWh target and could expand to 60 GWh as land becomes available. (Attribution: SEAT corporate briefing)
Volkswagen initially envisioned six European gigafactories, each with 40 GWh capacity. The plan mirrors the approach taken with the first model built in Salzgitter, Germany, which was created on a site that formerly served as an engine factory but has since shifted to parts production. German managers cautioned during the signing of the agreement with the Generalitat on July 21 that Sagunt enjoys a clear advantage: starting from a greenfield site in Parc Sagunt II, Sagunt can scale more readily than Salzgitter as volumes climb. (Attribution: Volkswagen leadership briefing)
electrification program
In a recent interview conducted by Alfonso Sancha, Seat’s vice president of acquisitions, who also oversees Volkswagen’s electrification program in Spain, spoke about the company’s Fast Forward initiative. He observed that the Salzgitter site, being a brownfield project, presents more modest capacity gains, while Sagunt offers the option to expand to 60 GWh provided the land is available and volumes justify the investment. The expansion would also hinge on the models that will receive the cells and the particular needs of third parties. The sentiment was that scale matters, but so does the specific application of each cell type. The initial plan is to supply three small electric car models produced at Martorell in Barcelona and Landaben in Navarre with the first batteries from Sagunt. (Attribution: Alfonso Sancha interview)
In the same discussion, Sancha noted the possibility of supplying batteries to Ford’s plant in Almussafes. Volkswagen PowerCo has a mission to provide cells to third parties, and whether Almussafes can receive units immediately depends on Ford’s chosen technology. If Ford adopts the combined cell technology and the production lines match the cell’s requirements, offers to supply will be considered and discussions with other partners will continue. (Attribution: Sancha remarks)
Ciriaco Hidalgo, reflecting on Volkswagen’s site selection, said the company evaluated ten locations in Spain before selecting Sagunt. He praised the Valencian Community for leadership, commitment, and cooperation during negotiations and highlighted the long-term vision shown by President Ximo Puig. The message he shared was one of substantial investment and mutual understanding. (Attribution: Hidalgo statement)
Consell facilitates land expropriation
Recently, the Consell approved a decree to speed up the expropriation of land for strategic projects in the Valencian Community, with the Volkswagen gigafactory cited as a key example. The regulation also accelerates land expropriation for photovoltaic plants, including Iberdrola’s plan to build solar facilities near Parc Sagunt to power the battery plant. (Attribution: Valencian Government decree)
The acquisition of land through expropriation could integrate the property into public heritage, subject to a review by the Consulate. In such cases, the strategic zone agreement would offer the land to the developer through lease or surface rights at a market-based rent. An expert report has been prepared to support this approach. (Attribution: government appraisal)
Gen Generalitat indicates that the change is a response to current economic, climatic, and geopolitical conditions, emphasizing the need for renewable energy deployment in line with the regional government’s evolving energy model. (Attribution: Generalitat statement)
These developments tie to photovoltaic parks for self-consumption, which require the activation of substantial surface areas for acquisition as part of the broader energy transition plan. (Attribution: government briefing)