# Volkswagen Sagunto battery gigafactory delays > Live situation record from CLSTR: https://clstr.news/situations/volkswagen-sagunto-battery-gigafactory-delays > Updated: 2026-07-27T10:00:54.000Z. Sources: 8. Developments: 2. In late July 2026 Volkswagen’s €250 million battery gigafactory in Sagunto, Spain, began to experience serious schedule setbacks. The automaker first terminated its contract with the Valencian construction consortium of Bertolín, Pavasal and Becsa after cost overruns on site urbanisation and reassigned the work to OHLA, a firm based in Pamplona and Madrid. At the same time, Korean contractor K‑Ensol, responsible for building clean‑room facilities, withdrew a large part of its workforce, leaving those sections unfinished and further slowing progress. Within days, Volkswagen announced leadership changes at its PowerCo battery subsidiary in Spain, appointing Ralf Schmid as CEO. Simultaneously, Chinese battery producer Gotion entered negotiations for a joint‑venture stake in the plant, while insisting Volkswagen would retain overall control. The project, already over two months behind its original September‑26 start‑up target, was hampered by bureaucratic hurdles, uncertain public funding, and rising material costs linked to Middle‑East tensions. These developments underscore the broader challenges of scaling European EV battery production. The situation reflects a shift from construction‑contract disputes to broader strategic partnership talks, with the plant’s start‑up now expected only toward the end of the year and the workforce still far below the planned 500 employees. ## Claims - Gotion is negotiating to join Volkswagen's Sagunto battery gigafactory as a joint‑venture partner. (corroborated by 2 sources) - Volkswagen says it will retain control of the Sagunto plant. (corroborated by 2 sources) - Ralf Schmid was appointed CEO of Volkswagen's PowerCo battery subsidiary in Spain, replacing Andreas Rottmann. (corroborated by 2 sources) - Gotion holds roughly 24‑26% of Volkswagen's PowerCo battery unit after a €1 billion investment in 2020. (corroborated by 2 sources) - Construction of the Sagunto gigafactory is delayed by more than two months. (single source) - Rising material costs caused by geopolitical tensions have led to cost overruns on the Sagunto project. (single source) - K‑Ensol, the Korean contractor responsible for the clean‑room construction, sent workers back to Korea, halting work. (single source) - Volkswagen terminated the original construction consortium (Bertolín, Pavasal, Becsa) and transferred urbanisation work to OHLA. (single source) ## Timeline ### 2026-07-27: Volkswagen's Sagunto gigafactory faces delays amid talks with Chinese battery maker Gotion Volkswagen's Sagunto battery plant is delayed over two months as Chinese Gotion negotiates entry, VW retains control, appoints new CEO, and faces cost overruns and contractor disputes. 3 sources. https://clstr.news/cluster/volkswagens-sagunto-gigafactory-faces-delays-amid-talks-with-chinese-battery-maker-gotion ### 2026-07-22: Volkswagen moves Sagunt battery gigafactory work to OHLA after contract break with local firms Volkswagen ends its contract with Valencian firms over cost overruns and tasks OHLA with finishing the Sagunt battery gigafactory, pushing the start of production to year‑end amid delays and a Korean contractor 5 sources. https://clstr.news/cluster/volkswagen-moves-sagunt-battery-gigafactory-work-to-ohla-after-contract-break-with-local-firms --- Cite as: Volkswagen Sagunto battery gigafactory delays. CLSTR, https://clstr.news/situations/volkswagen-sagunto-battery-gigafactory-delays