Volkswagen to spend €7bn on Spanish battery plant in European e-car push

Valencia will be Volkswagen’s first battery factory outside of Germany and its second overall as part of a plan to establish six plants across Europe

Volkswagen plans to invest about €52bn over the next five years in the development and production of new electric vehicles.

Volkswagen has said it will invest more than €7bn in Spain, including a battery plant alongside a range of suppliers to establish an electric-vehicle supply chain in the country.

Europe’s biggest car maker, which owns the Seat brand, plans to create an e-mobility hub in Spain led by a battery factory in Valencia and transform its local Martorell and Pamplona car-making facilities to start making electric vehicles, it said. The battery factory will have a capacity of 40 gigawatt-hours and start output in 2026.