Volkswagen mentioned it could make investments $20.38 billion to construct electrical automobile batteries, a transfer the corporate says will create 20,000 jobs and generate $20.38 billion in annual gross sales. The automaker will create a brand new firm referred to as Energy Co to supervise the huge effort as VW races to safe sufficient capability, supplies, and provides to energy its EV ambitions.
Energy Co will handle VW’s whole battery provide chain, from analysis and growth of latest applied sciences to the mining of the uncooked supplies to end-of-life recycling. The information was introduced at a groundbreaking ceremony for the corporate’s first battery plant in Salzgitter, a metropolis in Germany’s Decrease Saxony.
“The battery cell enterprise is likely one of the cornerstones of our New Auto technique which is able to make Volkswagen a number one supplier of the sustainable, software-driven mobility of tomorrow,” VW CEO Herbert Diess mentioned in a press release. “Establishing our personal cell manufacturing facility is a megaproject in technical and financial phrases. It reveals that we’re bringing the modern know-how of the long run to Germany!”
Final yr, VW unveiled plans to construct six battery cell manufacturing crops in Europe by 2030, together with the power in Salzgitter and one in Skelleftea, Sweden. A 3rd plant can be established in Valencia, Spain, and the fourth manufacturing facility can be primarily based in Jap Europe. The corporate can be exploring plans to construct future gigafactories in North America. The crops will finally have a manufacturing capability of 240 gigawatt-hours a yr.
Beginning in 2023, VW plans to roll out a brand new unified prismatic cell design of its batteries that can be put in throughout the automaker’s manufacturers. The objective is to have this unified cell design powering as much as 80 % of VW’s electrical automobiles by 2030. VW additionally has contracts with two different main battery producers, Samsung and CATL. And the corporate is backing a startup primarily based in San Jose, California, QuantumScape, which is engaged on extra energy-efficient solid-state batteries.
VW isn’t the one automaker to see vertical integration as a key part to EV success. Ford is constructing three new battery crops that it says can have 129 GWh a yr of manufacturing capability. Common Motors is planning 4 new battery factories within the US with LG Chem for a complete annual capability of 140 GWh. Stellantis is constructing a $2.5 billion battery plant in Indiana, and Hyundai and Toyota have additionally introduced cell manufacturing plans within the US.
VW, which is the second-largest automaker on the planet primarily based on quantity, has run into headwinds in its shift to electrical automobiles. Diess not too long ago mentioned that the corporate was “mainly offered out on electrical automobiles in Europe and in the US for the yr,” which implies that anybody hoping to get an EV from VW, Audi, or any of the group’s different manufacturers could have to attend till 2023, as the corporate tries to navigate the chip scarcity and manufacturing points from COVID shutdowns in China.