Volkswagen boosts electric automobile financial investment in Spain to 10 bln euros

SAGUNTO, Spain, May possibly 5 (Reuters) – German carmaker Volkswagen AG (VOWG_p.DE) and companions will invest 10 billion euros ($10.6 billion) to make electrical autos and batteries in Spain, its main executive stated on Thursday, 3 billion euros a lot more than it had earlier fully commited.

The enterprise also announced a partnership deal with Spain’s biggest electrical power utility Iberdrola (IBE.MC), which will set up a solar park to partly electricity the battery plant to be designed in the municipality of Sagunto in close proximity to Valencia.

Iberdrola will invest 500 million euros in the electrification system, its Main Government Officer Ignacio Sanchez Galan advised reporters, devoid of offering even further information.

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Volkswagen stated in March it would spend 7 billion euros to create a battery plant and produce electric powered autos at its two vehicle factories in Spain, but CEO Herbert Diess said that determine had been raised to 10 billion with new associates on board. examine far more

“We will electrify the second-most significant motor vehicle producer in Europe (Spain) with a new giga-manufacturing unit of batteries and the generation of electric cars and trucks in two crops,” Diess explained to an function in Sagunto, introducing the approach was to generate “a whole ecosystem of suppliers from lithium extraction to the assembly of batteries”.

Diess speaking on a visit with Spanish Key Minister Pedro Sanchez to the web site where the factory will be designed.

The German carmaker aims to get started making the 40-gigawatt-hour (GWh) plant in the to start with quarter of 2023, with serial manufacturing to commence by 2026. By 2030, the web-site will hire more than 3,000 employees, Volkswagen reported. examine extra

Spain, Europe’s most significant carmaker after Germany, past thirty day period launched a bidding course of action for about 3 billion euros in financial loans and grants to boost electric powered vehicle (EV) production. Volkswagen and its Spanish unit SEAT have offered a bid.

Winners of the PERTE money, as the programme that consists mostly of European Union pandemic relief resources is recognised, will be selected this 12 months.

The company will make investments 3 billion euros in the plant in Sagunto, yet another 3 billion euros in four SEAT factories, which includes the Martorell plant around Barcelona, and 1 billion in Pamplona, it mentioned.

($1 = .9463 euros)

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Reporting by Emma Pinedo Supplemental reporting by Christoph Steitz Editing by Bernadette Baum and Edmund Blair

Our Standards: The Thomson Reuters Belief Principles.

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