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The President of the Valencian Region Ximo Puig (3rd from the left) at the presentation of the gigafactory, Source: Ayuntamiento de Sagunto

Sagunto to host Spain’s first gigafactory

Sagunto to host Spain’s first gigafactory

The facility will produce EV batteries and it will boost local employment significantly

At the end of last week, high-ranking Spanish officials and representatives from Volkswagen Group gathered in the Valencian city of Sagunto to announce a grand project for the construction of the country’s first gigafactory there. The facility will produce batteries for electric cars to supply the Spanish auto industry in Catalonia and Navarre, creating a veritable modern industrial ecosystem.

It is estimated that the factory will begin to be built in the first four months of 2023, and in 2024 the installation of the equipment will begin. In 2025 they hope to start the production of the first samples manufactured in serial means before making the plant fully operational in 2026.

Economic rejuvenation for the Mediterranean city

The Gigafactory will be located in the Parc Sagunt II former industrial site, which points to a welcome revival of manufacturing activity in the port city, which has seen long periods of decline. Together with Parc Sagunt I, the site forms the largest industrial park in Europe.

Spain had a moral debt with Sagunto after the reconversion. Just a century ago, construction began on the Blast Furnace, which can still be seen. Today we are experiencing another industrial revolution,” declared Ximo Puig, the President of the Valencian Regional Government. He was confident that the day of the presentation was a day “that is going to change the lives of thousands of Valencians”.

The plant is expected to employ over 3,000 people directly and up to 12,000 indirectly. The gigafactory will thus serve as the base for the electrified vehicles of SEAT in Barcelona and Volkswagen in Navarre. The initiative will be one of six such planned by Volkswagen for Europe and will be able to generate up to 40 GWh, which is equivalent to 800,000 units per year.

As for the energy that will feed the battery gigafactory, between 20% and 30% will come from a new solar plant that Spanish energy company Iberdrola is going to install nearby, with an initial area of ​​240 hectares and a cost close to 500 million euros.

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