The Volkswagen Group is not content with revolutionizing the automotive sector with its Spanish gigafactory. The German manufacturer is now planning to extend the use of its battery cells to the energy sector, opening up new prospects for this key technology in the ecological transition.
Massive investment for the electric future
Last May, Volkswagen launched the construction of its Gigafactory in Sagunto, Spain. This titanic project, representing an investment of 3 billion eurosis one of the largest ever undertaken in the country. The main objective is to produce battery cells for electric vehicles manufactured at the Martorell and Pamplona plants.
Construction, led by the PowerCo subsidiary, is progressing apace. Preliminary infrastructure work, such as water piping, drainage and waterproofing, has already been completed. The next stage, scheduled for November, involves construction work on the buildings. Installation of the production equipment is scheduled for 2025, with a view to production start-up in 2026.
A broader vision: beyond the automotive sector
During a visit to the site, Javier Rivera, CFO of PowerCo, revealed a key piece of information: “We plan to supply new customers, not only in the automotive sector, but also in the energy sector”. This statement marks a strategic turning point for Volkswagen.
Indeed, the German group plans to use part of Sagunto’s battery cell production to meet the needs of the energy sector, particularly in the field of energy storage. This diversification could play a crucial role in the energy transition, by enabling excess electricity produced during periods of high production to be stored and fed back into the grid during peaks in demand.
A flexible plant to cope with market uncertainties
Despite the current slowdown in electric vehicle sales, which has led some automakers to review their strategies, Volkswagen remains confident. “At PowerCo, we are convinced that electrification is the future and that the electric vehicle is here to stay,” says Javier Rivera.
Nevertheless, the group has designed the Sagunto gigafactory as a “standardized and flexible plant, capable of adapting to market developments”. This cautious approach will enable Volkswagen to adjust production in line with actual demand, while exploring new outlets for its battery technology.
A major economic impact for the region
Beyond its strategic importance for Volkswagen, the Sagunto Gigafactory will have a considerable economic impact on the region. In its first phase, the plant is expected to employ around 1,500 people, with an initial production capacity of 20 GW. Ultimately, when the second phase is launched, the workforce could rise to 3,000.
This job creation, combined with the emergence of an industrial ecosystem around battery production, could make the Valencia region a major hub of green industry in Europe.
A model for French industry?
Volkswagen’s initiative in Spain could serve as an inspiration for the French automotive industry. As the country strives to develop its own electric battery industry, with projects such as the ACC gigafactory in Douvrin, the diversification of outlets could offer new opportunities for growth and innovation.
French manufacturers such as Renault and Stellantis could consider similar strategies for their future battery factories, thus contributing both to the transition to electric mobility and to the strengthening of the national power grid.
In conclusion, Volkswagen’s decision to extend the use of its battery cells to the energy sector bears witness to the growing convergence between the automotive and energy industries. This innovative approach could well define a new paradigm for the industry, where gigafactories no longer simply supply the automotive sector, but play a key role in the global energy transition.
