23008_Nearshoring Report

Investment in facilities by both primary automotive manufacturers and OEM suppliers will be necessary to achieve the goals set out by the UK and the EU are likely to take place over both the short and longer term; as older vehicle models are phased out, manufacturers will look to invest in both new production lines and repurpose existing ones. Complimenting these investments will be the development of new facilities for the production of secondary and tertiary components which as vehicle technology evolves will require new production facilities themselves.

INOBAT

In late 2022, Slovakian battery maker InoBat announced that it had signed declarations of intent to build electric vehicle battery plants in both Spain and Serbia. In Valladolid, Central Spain, InoBat intends to invest EUR 3 billion to build a plant albeit until finalised other locations including the UK remain under consideration. InoBat further announced that it had signed declarations of intent with the Serbian government to build an EV battery factory with a capacity of up to 32 GWh. These facilities will complement its 1GWh plant in Voderady, near Bratislava, Slovakia which is currently under construction and due to be opened in 2023.

In May 2022, Volkswagen and its Spanish subsidiary Seat announced plans to build a EUR 10 billion battery factory in Sagunto, north of Valencia in Eastern Spain. Production is expected to begin in 2026 and it will have an annual production capacity of 40GWh, producing batteries for the group’s factories in Martorell and Pamplona. Herbert Diess, the chief executive of Volkswagen Group, said that this will be the biggest industrial investment ever made in Spain and that it was a “model for the whole of Spain on how traditional industrial structures can be transformed”. VOLKSWAGEN & SEAT

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