Volkswagen will invest 1,000 million euros for electric car batteries



The Volkswagen Group has announced that it will invest 1,000 million euros in its first battery cell production plant in Europe, which will probably be located at its headquarters in Salzgitter, Germany. Everything depends, according to the consortium, on the general economic circumstances and that the price of energy is "attractive". There is even talk of gigafactories.

The German consortium has not given an approximate date when this production plant will start, but it has explained that a plant like this one will need at least three years. The Volkswagen Group explained that in the first phase, partnerships will be carried out with strategic suppliers in the field of battery cells, such as its well-known SKI partners, LG Chem and CATL. According to Reuters, Volkswagen will buy 50,000 million euros in battery cells from these suppliers.

A strategy that will boost the European project to overcome the Asian hegemony in this field, although the components of the batteries made in Europe will be of Korean origin (SK Innovation and LG Chem) and Chinese (CATL).

On the other hand, at the end of the year the plan to build gigafactories in collaboration with some partners, not yet disclosed, will have been outlined .

Herbert Diess, Volkswagen chief executive said: “We are pressing ahead with the electrification and digitalization of our fleet like no other automotive company,”

“At the same time, we are building up innovative business areas over the coming years to cater for innovative mobility services. This is about aligning the Volkswagen Group to play a decisive role in shaping the sweeping transformation of our industry,” Mr. Herbert Diess added.

And what about the 'ingredients to make those batteries? The German consortium has already reported last month that it has signed a memorandum of understanding with Ganfeng Lithium, the world's third largest producer of lithium metals in terms of production capacity. This Chinese giant will supply lithium to the Volkswagen Group and its suppliers over the next ten years. The manufacturer also promises to reduce the amount of cobalt used in the manufacture of batteries in the next three years from the current 14% to 5%.

 



Voltabox forecasts growth to 115 Million euros

Voltabox continues to grow. According to preliminary figures, the German battery system manufacturer generated sales of 66.9 million euros in 2018. For the...

Tesla Model X

Tesla has secured funding for the first phase of its China plant in Shanghai. Tesla, Inc. electric car manufacturer has signed loan agreements with...

Urban electric buses

The Federal Ministry for the Environment in Germany is providing an additional 180 million euros for the purchase of electric buses in urban public transport. As a...

WM Motor collects the equivalent of 400 million euros

The Chinese electric car startup WM Motor has been able to generate nearly 400 million euros in a financing round led by Baidu. Other investors in the...


Subscribe to my Newsletter




Add new comment