Powerco, the battery division of Volkswagen Group, has set July 2027 as the start date for series production and supply of battery cells at its Sagunto gigafactory in Valencia, according to industry sources. The facility will launch with two production units, delivering an initial annual capacity of 20 GWh.
A preseries phase is planned for September to October 2026, during which Powerco will begin producing pattern C prototype cells under full-series conditions for customer validation. Company officials note that installation of the Clean & Dry Rooms will start this year, laying the groundwork for progressive capacity increases aligned with demand. They emphasize that cell manufacturing involves complex, high-precision processes distinct from traditional automotive component production.
Industry sources also highlight an institutional visit in July 2025, attended by the President of the Generalitat Valenciana, Carlos Mazón, to inaugurate the completed main access road linking to the Sagunto site.
Initially, Volkswagen’s small battery electric vehicle models—including the Cupra Raval and VW ID. Polo assembled in Martorell, and the Škoda Epiq and VW ID. Cross in Landaben—are slated to use cells from the Salzgitter plant in Germany, provided its series output begins in mid-2025. If that schedule slips, early production vehicles may temporarily rely on Chinese battery supplies.
The Sagunto project has been delayed since its 2022 announcement, due to slower EV adoption in Europe, extended regulatory and funding processes under Spain’s Perte VEC program, licensing approvals for the Valencian site, and the development of a unified cell design for multiple vehicle platforms. Volkswagen’s cautious investment pacing reflects the need to synchronize capacity additions with evolving EV demand.
Looking ahead, Volkswagen plans to prioritize its planned gigafactory in St. Thomas, Ontario. Groundworks for the main building are set to begin shortly, with first cell deliveries expected by late 2027 and a potential annual capacity of up to 90 GWh. The Canadian facility is projected to receive between €5.3 billion and €8.65 billion in public support over ten years, enhancing its economic appeal. Depending on European demand trends, Volkswagen may import cells from Canada to Europe before expanding the Sagunto and Salzgitter sites to their full 40 GWh capacities.
Source: La Tribuna de Automoción
