# Volkswagen boosts electric car investment in Spain to 10 billion euros
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Volkswagen AG to invest €10bn in Spanish electric car plant
Meta Description: Volkswagen AG and partners plan to invest 10 billion euros in Spain to build a giga-factory for batteries and produce electric cars, creating over 3,000 jobs
URL: https://financedigest.com/volkswagen-boosts-electric-car-investment-in-spain-to-10-billion-euroshtml

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By Emma Pinedo

SAGUNTO, Spain (Reuters) -German carmaker Volkswagen AG and partners will invest 10 billion euros ($10.6 billion) to make electric vehicles and batteries in Spain, its chief executive said on Thursday, 3 billion euros more than it had previously committed.

The company also announced a partnership deal with Spain’s largest power utility Iberdrola, which will set up a solar park to partly power the battery plant to be built in the municipality of Sagunto near Valencia.

Iberdrola will [invest 500 million euros](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") in the electrification plan, its Chief Executive Officer Ignacio Sanchez Galan told reporters, without giving further details.

Volkswagen said in March it would [invest 7 billion euros to build a battery plant and produce electric vehicles at its two car](https://www.financedigest.com/classic-car-insurance-broker-launches-future-classic-investment-guide.html "Classic car insurance broker launches Future Classic investment guide") factories in Spain, but CEO Herbert Diess said that figure had been raised to 10 billion with new partners on board.

We will electrify the second-largest car producer in Europe (Spain) with a new giga-factory of batteries and the production of electric cars in two plants,” Diess told an event in Sagunto, adding the plan was to create “a full [ecosystem of suppliers from lithium extraction to the assembly of batteries”](https://www.financedigest.com/volkswagen-to-partner-on-indonesia-ev-battery-ecosystem-minister.html "Volkswagen to partner on Indonesia EV battery ecosystem -minister").

Diess [speaking on a visit with Spanish](https://www.financedigest.com/in-beijing-spanish-pm-urges-xi-to-speak-with-ukraines-zelenskiy.html "In Beijing, Spanish PM urges Xi to speak with Ukraine’s Zelenskiy") Prime Minister Pedro Sanchez to the site where the factory will be built.

The German carmaker [aims to start building](https://www.financedigest.com/lilium-aims-to-build-400-air-taxis-a-year-seek-grants.html "Lilium aims to build 400 air taxis a year, seek grants") the 40-gigawatt-hour (GWh) plant in the first quarter of 2023, with serial production to start by 2026. By 2030, the site will [employ more than 3,000 staff](https://www.financedigest.com/positive-group-sees-huge-increase-in-focus-from-employers-on-staff-psychological-health.html "Positive Group Sees Huge Increase In Focus From Employers On Staff Psychological Health"), Volkswagen said.

Spain, Europe’s largest carmaker after Germany, last month launched a bidding process for about 3 [billion euros](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") in loans and grants to promote electric vehicle (EV) production. [Volkswagen and its Spanish unit SEAT have presented a bid](https://www.financedigest.com/volkswagen-to-invest-in-mines-in-bid-to-become-global-battery-supplier.html "Volkswagen to invest in mines in bid to become global battery supplier").

Winners of the PERTE funds, as the programme that consists mostly of [European Union pandemic relief funds](https://www.financedigest.com/collegiate-ac-and-shuman-capital-launch-e300-million-european-student-living-fund.html "Collegiate AC and Shuman Capital launch €300 million European Student Living Fund") is known, will be chosen this year.

The company will [invest 3 billion euros in the plant](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") in Sagunto, another 3 billion euros in four SEAT factories, including the Martorell plant near Barcelona, and 1 billion in Pamplona, it said.

($1 = 0.9463 euros)

(Reporting by Emma Pinedo; Additional reporting by Christoph Steitz; Editing by Bernadette Baum and Edmund Blair)


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