VW says Spanish battery plant will be near Valencia, to open in 2026
Updated 23 March 2022
Reuters
BARCELONA: Volkswagen has picked a site near Valencia for its planned battery cell plant in Spain and intends to start operations in 2026 with around 3,000 employees and annual production of 40 gigawatt hours (GWh), the German carmaker said on Wednesday.
The world’s second-largest automaker has set a target to build six large battery factories across Europe with partners by the end of the decade as it strives to become a global leader in electric vehicles.
Volkswagen has said previously its investment in the Spanish plant depends on receiving European Union pandemic relief funds.
The Spanish government last week launched a bidding process to hand out around 3 billion euros ($3.3 billion) — around half in grants — to promote EV production, with Volkswagen and its Spanish unit SEAT among the bidders.
The German group said it planned to spend more than 7 billion euros ($7.7 billion), along with external suppliers, on the Sagunto plant and to start EV production at SEAT’s factory outside Barcelona and at VW’s factory outside Pamplona.
Automakers across the world are racing to build battery plants to supply new electric models. A joint venture between Stellantis, Mercedes-Benz and TotalEnergies said on Wednesday it planned to build a battery factory in Italy.
The Sagunto plant will have several partners, but they have not been decided yet and could include other carmakers, SEAT’s chairman Wayne Griffiths told a press briefing.
It would be the single largest investment in industrial infrastructure ever in Spain, according to SEAT, which said it expected “substantial” public aid to support it.
Volkswagen’s German battery plant in Salzgitter will be built by 2025 in partnership with China’s Gotion High-Tech , in which Volkswagen owns a 26 percent stake.
Supplier hub to anchor Saudi car industry, says TASARU CEO
Updated 7 sec ago
Nada Alturki
RIYADH: Saudi Arabia’s Public Investment Fund is stepping up efforts to localize automotive manufacturing, with its portfolio company TASARU announcing partnerships with five Tier-1 global suppliers to localize advanced component manufacturing in the Kingdom.
The agreements were announced at the fourth PIF Private Sector Forum in Riyadh. TASARU also revealed plans to establish a new Supplier Hub in the King Salman Automotive Cluster in King Abdullah Economic City, designed to support next-generation vehicle development and strengthen the national automotive ecosystem in alignment with Vision 2030.
TASARU also revealed plans to establish a new Supplier Hub in the King Salman Automotive Cluster in King Abdullah Economic City. Supplied
Speaking to Arab News on the sidelines of the forum, Michael Mueller, CEO of TASARU, said: “You cannot build cars without having the right partners from the supplier side, and with that, together with the OEMs, we selected the partners that we just announced today to localize them.”
He added that the presence of large international suppliers is expected to attract smaller Tier-2 and Tier-3 manufacturers, helping the ecosystem scale.
The five partners include Shin Young for metal stamping and body structures, JVIS for exterior plastics, and BENTELER for chassis and hot-formed steel components. Guangxi Fangxin will supply interior systems, while Lear Corp. completes the group, with all expected to establish manufacturing operations in the Kingdom.
Founded more than three years ago, TASARU was established to introduce new technologies into Saudi Arabia’s mobility sector. The company has prioritized localizing smaller OEM and supplier businesses while bringing next-generation solutions into the Kingdom.
Mueller said visible progress on factory construction by Ceer, Lucid and Hyundai is shifting perceptions about the sector’s viability.
“A lot of people on the sideline watched whether automotive is really happening,” he said. “Now they recognize that the factories … are under construction, so that’s the first signal that it’s not just the bubble. It’s not just PowerPoint. It’s getting real now on the ground.”
The CEO shares that KAEC is positioned as a hub for Saudi Arabia’s automotive industry, making it a strategic location for the TASARU Supplier Hub. The facility is designed to support OEMs and next-generation vehicles, including Ceer and Lucid Motors, through a shared, just-in-time manufacturing model with integrated logistics and regulatory support.
TASARU will provide infrastructure and operational support, while partners bring technical expertise and gradually develop training centers to build a local workforce, Mueller said.
He positioned Saudi Arabia as an attractive base for global suppliers because of its access to minerals and rare earth resources, energy availability and coordination across PIF portfolio companies and government entities.
“They have access to minerals. They have access to rare earth. They can benefit from what is already existing. They have stable energy solutions. I think this footprint might benefit from the whole ecosystem as it is, not just automotive,” he said.
Companies without a Saudi footprint risk missing a “huge opportunity,” Mueller added.
He said advancing the industry will require clearer regulatory frameworks, including defined trigger points and licensing pathways that allow companies to execute their mandates.
“Of course, you need to have more or less the regulatory framework to allow autonomous cars, sooner or later, on the streets. But it's happening, and this is a huge chance also for Saudi Arabia,” Muller said.
He added: “If you are advanced in bringing such regulations onto a fast track, then you have a huge opportunity to be one of the first countries that establish this.”
With rising traffic levels in Riyadh, Mueller said emerging mobility technologies could help solve first- and last-mile transportation challenges.
“If the Metro is already full, that is good because people are using it. Now, you have to connect the dots. You have to finally make sure that people get from home to the metros and or to the bus station. So this first last-mile transportation is something where new technologies might help to bridge that,” he said.
The CEO said the project is expected to take roughly one and a half to two years for suppliers to go live. More broadly, the initiative reflects Saudi Arabia’s transition from investment attraction to full-scale industrial localization, strengthening local content, private-sector participation, and long-term industrial resilience in line with Vision 2030.
