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Volkswagen will invest 10 billion euros in Spain to produce electric vehicles and batteries

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

Iberdrola will invest 500 million euros in the electrification plan, its general manager 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 the group’s two car factories in Spain, but CEO Herbert Diess said the figure was supplemented by 10 billion, with new partners.

“We will elect the second largest carmaker in Europe (Spain) with a new battery factory and the production of electric cars in two factories,” Diess said at an event in Sagunto on Thursday, adding that the plan is to create “a complete factory, with an ecosystem of suppliers, from lithium extraction to battery assembly”.

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The German carmaker plans to start building the 40-gigawatt-hour (GWh) plant in the first quarter of 2023, with series production set to begin in 2026.

By 2030, the plant will employ more than 3,000 workers, Volkswagen said.

Spain, Europe’s largest carmaker after Germany, launched a tender last month that includes the provision of loans and grants of around € 3 billion to promote the production of electric vehicles (EVs).

Volkswagen and its Spanish division SEAT have submitted a bid.

The winners of the PERTE funds, as the program is known to consist mainly of European Union pandemic relief funds, will be chosen this year.

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The company will invest € 3 billion in the Sagunto plant, another € 3 billion in four SEAT plants, including the Martorell plant near Barcelona, ​​and € 1 billion in Pamplona.

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