Volkswagen’s battery subsidiary PowerCo will delay the start of series production at its battery cell factory in Sagunt, near Valencia, until July 2027, according to a report from La Tribuna de Automoción. The postponement, however, is not expected to affect the automaker’s planned 2026 production launch of its small electric vehicles in Spain.
PowerCo’s current roadmap foresees battery cell deliveries beginning in mid-2027, when two production blocks with a combined capacity of 20 GWh come online. The cells from the Sagunt facility will supply Volkswagen’s plants on the Iberian Peninsula, which are set to manufacture four small electric models — including the Cupra Raval and VW ID. Polo — followed later by the compact ID.Every1.
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The Cupra Raval is reportedly scheduled to begin production in June or July 2026 at the Martorell plant, followed by the VW ID. Polo roughly a month later. At the Navarra site, the Skoda Epiq and VW ID. Cross are expected to follow in the second half of 2026. While these details have not been officially confirmed, they align with information from industry sources cited by the Spanish outlet.
To bridge the gap before the Sagunt plant becomes operational, PowerCo is reportedly preparing to supply cells from its German facility in Salzgitter, where production is slated to start in mid-2026. If delays occur there as well, the company is considering sourcing battery cells from China as a contingency measure.
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A PowerCo spokesperson told electrive that Volkswagen has followed a “Make AND Buy” strategy from the start — combining internal production with external suppliers to ensure flexibility. This approach allows early vehicle production to proceed even if local battery output is not yet available.
Pilot production in Sagunt is now expected to begin in September or October 2026, slightly behind the initial July target. PowerCo said it has begun installing Clean & Dry Rooms at the site and still aims to start pre-series output next year, though it did not confirm specific timing.
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Both the Sagunt and Salzgitter facilities will initially operate with two 20 GWh blocks, but each is designed to expand to 40 GWh. According to La Tribuna de Automoción, further European expansion has been delayed as PowerCo prioritises its Canadian plant in St. Thomas, Ontario. The facility, expected to begin deliveries by the end of 2027, is planned for up to 90 GWh of capacity and is viewed as more profitable due to substantial public subsidies.
Industry insiders told the Spanish publication that PowerCo is even exploring the possibility of shipping cells from Canada to Europe, as “profitability would be higher than producing the components in Spain and Germany,” despite additional logistics costs.
