The Volkswagen Group and SEAT S.A. will invest €10 billion, together with their partners in the Future: Fast Forward project, in the event of a positive resolution of their application to PERTE VEC. (earlier post) In March, the Group said it would invest €7 billion.

Last week, the 62 national and international companies and benchmark firms that form the project applied to the Strategic Project for Economic Recovery and Transformation program (in Spanish, PERTE) for the Electric and Connected Vehicle (in Spanish, VEC).

This investment of 10 billion euros will electrify Spain and Europe's second-largest automotive manufacturer, creating a battery Gigafactory in Sagunto, enabling the production of electric vehicles at the Martorell and Pamplona plants, and building-up a comprehensive supplier ecosystem. This is the biggest industrial investment ever made in Spain.

—Herbert Diess, CEO of the Volkswagen Group

Volkswagen Group will locate Spain’s first Gigafactory in Parc Sagunt II (Valencia). The construction of this battery plant is one of the main projects included in Future: Fast Forward.

The Gigafactory will have an annual production capacity of 40 GWh, supplying the total volume of cells to Martorell and Pamplona. It will employ more than 3,000 people by 2030 and occupy an area of 200 hectares. Construction of the Gigafactory will begin in the first quarter of 2023, and production will start in 2026.

The first milestone must be the positive outcome of the PERTE submission and the finalization of the permits.

We will build the battery Gigafactory with an investment of more than 3 billion euros, but the PERTE funds are essential if we are to realzse our ambition of turning Spain into a European hub for electric vehicles.

The battery factory in Sagunto will occupy a 200-hectare site and will be the third of six Gigafactories the Group plans to build across Europe. For our battery ramp-up in Spain and Europe, sustainability and a closed value chain loop are key. To name a few aspects: with the electricity to supply the Gigafactory coming 100 percent from renewable energies, with a local-for-local approach and by recovering valuable raw materials on site, our new factory in Valencia will be a blueprint for circular economy.

—Thomas Schmall, Member of the Board of Management of Volkswagen AG, Chief Technology Officer and Chairman of the Board of SEAT S.A.

The Volkswagen Group and Iberdrola Group have signed a strategic agreement that will allow the construction of a photovoltaic plant in Sagunto to supply the Gigafactory with green energy.

The solar plant will cover 250 hectares and will be located less than 10 kilometers from the battery factory. In the first phase, it will provide 20% of the Gigafactory’s total energy.

SEAT S.A. is the only company that designs, develops, manufactures and markets cars in Spain. A member of the Volkswagen Group, the multinational has its headquarters in Martorell (Barcelona), sells vehicles under the CUPRA and SEAT brands, while SEAT MÓ is the business unit that covers urban mobility products and solutions.

SEAT S.A. will invest €5 billion through to 2025 to develop new models for the two commercial brands, SEAT and CUPRA, and to electrify the range. The company aims to play a relevant role in the electrification of urban electric vehicles, with a special focus on the transformation of the Spanish automotive industry.