The Government gives Volkswagen thirty more months to finish the Sagunto gigafactory

2024-01-03 12:24:40

The Government has given Volkswagen thirty more months to finish the battery gigafactory from the Valencian town of Sagunto. The Executive admits that the first Electric and Connected Vehicle (VEC) Plan started from “very demanding premises” and opens the door for all fund winners to finish the projects by early 2028. Initially, the conditions of the Perte VEC obliged the winners to finish the projects in autumn 2025 (a fact that forced Ford to give up 106 million for the electrification of Almussafes). The German multinational assures that it continues with the planned schedule and that it will produce batteries in 2026. The company has not yet awarded the works for the plant (it is currently carrying out preliminary work) despite the fact that it initially had to be ready within 21 months (in September 2025).

The company has not yet awarded the works despite the fact that initially the plant was to be ready within 21 months

The Executive justifies the extension (which benefits all projects funded by Perte VEC I) in that during the actual execution of these actions, various problems have arisen derived from both the bottlenecks of the value chain (essentially in the field of batteries) as well as changes in technology to ‘be up to date’ in an emerging sector. Also, remember that The first Perte required the presentation of consortia with many companiess (the one led by Volkswagen is made up of 62), which “translates into greater time” when making decisions than “in individual help processes.” The Government adds that there have also been reports temporary problems in the supply of raw materials“especially at those points in the value chain that are critical for global development and specifically those related to battery and semiconductor raw materials.”

The multinational assures that it continues with the planned schedule and that it will produce batteries in 2026

Waiting

Volkswagen presented the project a little over a month ago (under a confidentiality commitment) to a group of large construction companies that choose to carry out the works of the gigafactory. The company work has not yet been awardedbut yesterday he stressed that their deadlines “have not changed” and that the first cells will leave the Sagunt plant in 2026. In any case, You no longer have the pressure of the deadlines set by the first Perte VEC and now you have until March 2028 to finish the entire project (provided you formally request it and justify the need for the extension).

Ford

Ford a year ago he renounced the Perte VEC I aid of 106 million euros after revising its forecasts for Europe and delaying its production plans in Spain. The underlying problem is that the European reconstruction funds (which are distributed through the perte) were designed to promote economic reactivation quickly and Brussels established as a condition that industrial projects be executed before the end of 2025. After the Ford’s resignation, the Government asked the European Commission and achieved that the funds from the second Perte VEC could be spent until 2028. With the measure it has achieved that Ford once again opts for the funds to electrify Almussafes (which implies guaranteeing the future of plant).

Extra term

The Government has now gone one step further and has extended this extra period to all Perte VEC I projects. who need it and justify the request. Volkswagen was the main beneficiary of aid from the first Perte VEC with 397 million for the Future: Fast Forward project, which includes the electrification of the Martorell (Barcelona) and Landaben (Navarra) automobile plants, and the Sagunt gigafactory. Other beneficiaries were Mercedes (170 million), Hub Tech Factory (107 million), Opel (52 million) or Renault (40 million).