MADRID — Volkswagen Group’s Spanish unit Seat will go forward with a mission to make electrical autos and batteries after overcoming preliminary reservations about authorities subsidies, it mentioned on Wednesday.
The mission, by which 60 different VW Group-linked corporations may also participate, foresees an funding of 10 billion euros ($10.06 billion) to affect Spain’s auto business and switch the nation right into a European hub for e-vehicle and battery manufacturing.
VW Group mentioned in March that it plans to construct a battery cell plant on the outskirts of Valencia with about 3,000 workers and a manufacturing of 40 gigawatt hours (GWh) a 12 months.
Starting in 2026, the battery manufacturing unit will provide cells to automobile vegetation in Martorell and Pamplona. The factories will construct electrical small vehicles for VW Group manufacturers.
The Spanish authorities mentioned final month that VW and Seat would obtain 397 million euros of the 877 million complete within the first section of the electrical automobile financing program utilizing EU pandemic restoration funds. Although it was the carmaker that obtained the most important allocation, Seat initially mentioned the funding was not adequate.
The battery manufacturing unit would be the third of six gigafactories VW Group plans to construct throughout Europe.
Source: europe.autonews.com