BERLIN, March 23 (Xinhua) -- Germany's largest carmaker Volkswagen on Wednesday announced plans to build an electric vehicle (EV) battery plant in Valencia, Spain, which could start production in 2026.
Volkswagen and its subsidiary SEAT would bid to receive subsidies from the Spanish government for this project. If successful, seven billion euros (7.7 billion U.S. dollars) would be invested in Spain along the entire value chain for the production of EVs.
"This project is highly important -- for Volkswagen, for Spain and for the whole of Europe," said Thomas Schmall, member of Volkswagen AG's Board of Management responsible for technology and chairman of SEAT's Board of Directors.
Gigafactory Valencia, which aims for an annual production capacity of 40 gigawatt hours (GWh), would become Volkswagen's second cell factory site and the first outside Germany. The first site in Salzgitter is to be constructed in partnership with China's Gotion High-Tech by 2025.
Volkswagen plans to build six gigafactories by 2030, bringing total capacity to 240 GWh per year. (1 euro = 1.10 U.S. dollars) ■
