The Volkswagen Group confirmed a €10 billion ($10 billion) project to produce batteries and electric cars in Spain would go ahead, according to Anadolu Agency.
Recently, the highly-anticipated project was in the shaky territory after the company expressed concerns about government subsidies.
However, CEO of Spanish automaker SEAT, Wayne Griffiths, stated on November 9 that his company and the others involved would welcome the €397 million the government is offering to back the project.
The combined investment of VW and about 60 other firms will be Spain’s largest industrial investment in history, according to SEAT.
A vital part of the project includes establishing the Volkswagen Group’s first in-house battery factory, or gigafactory, outside Germany.
40 GW battery production & 3,000 jobs by 2030
It has a 40 gigawatts battery production and will be able to supply all the batteries needed to make electric cars in two nearby factories, as per the Spanish manufacturer.
That factory alone is set to create 3,000 jobs by 2030, said the automaker.
Griffiths called the announcement “a historic milestone” for the companies and stated it will “maintain Spain’s global competitivity.”
“Turning [Spain] into a hub for electric vehicles in Europe is a highly important project — for us, for the people in Spain and the whole of Europe,” Volkswagen Group tweeted.
Spanish Prime Minister Pedro Sanchez celebrated the “extraordinary” news and gave his government a pat on the back.
“SEAT and Volkswagen have said that they are committed to the future of the automobile sector in our country and by creating a gigafactory in Valencia. Just a few days ago, I was also with a Chinese company … talking about building another gigafactory in Extremadura,” said the Prime Minister at a party conference.
Spain & Maersk’s agreement
Sanchez added that Spain signed an agreement with shipping giant Maersk for exploration to be a green maritime fuel hub. That project would also attract over €10 billion in investment.
“If this shows anything, it’s Spain’s extraordinary potential, the confidence that the country inspires in big international companies and investors, and why not say it, the economic policy of the Spanish government,” stated Sanchez.
