Volkswagen Group will build a total of four new small electric cars for the VW, Skoda and Cupra brands at two plants in Spain, VW brand CEO Thomas Schaefer said.

On the sidelines of the Volkswagen ID.2all concept's reveal in Hamburg last week, the executive said the ID.2 subcompact hatchback previewed by the ID. 2all and the Cupra UrbanRebel will be made at SEAT's Martorell plant near Barcelona.

In addition, two small electric SUVs for the VW and Skoda brands will be made at the carmaker's factory in Pamplona in northern Spain, where the Polo is currently built. According to Automobilwoche via Automotive News Europe, Volkswagen's SUV will be called ID.2X. 

All four small EVs will be based on VW Group's MEB Entry platform, which is FWD-only on the ID.2all. According to Schaefer, the economies of scale and the fact the cars will be made in Spain, where wages are relatively low, will help keep costs down. 

Volskwagen said last week the production model previewed by the ID.2all study will start under €25,000 (£22,000), with Schaefer noting that the ID.2 will be the cheapest of the four models.

The Cupra UrbanRebel will be positioned as a more sporty, upmarket model, while the small electric SUVs are expected to be more expensive due to their body style.

Gallery: Volkswagen ID.2all

The company said at the launch of the ID. 2all last week that it is also considering a more affordable EV with a base price under €20,000 (£18,000). Not much is known about that model other than the fact it could get the ID.1 badge when it enters production sometime in 2027. 

Building four electric cars in Spain is part of Volkswagen Group's €10 billion (£8.8 billion) investment project in the country, which includes a €3 billion euro (£2.65 billion) battery cell gigafactory near Valencia that will be run by the automaker's battery company, PowerCo.

Schaefer mentioned that all four entry-level EVs will use batteries supplied by the Volkswagen Group's new cell plants, initially from Salzgitter and then from Valencia. The base models will use lithium iron phosphate (LFP) battery chemistry, while longer-range variants will use a nickel manganese cobalt (NMC) chemistry, he added.

Production will start in 2025 with the Cupra UrbanRebel, which will be followed by the other three cars within one and a half years.

Volkswagen Group's investment is projected to give the Spanish economy a €21 billion (£18.5 billion) boost by turning the country into a European hub for electric vehicle and battery manufacturing.