Volkswagen, partners to invest over $20 bln in car battery business

SALZGITTER, Germany, July 7 (Reuters) – Volkswagen VOWG_p.DE reported on Thursday it would devote more than 20 billion euros ($20.38 billion) in a battery mobile enterprise jointly with partners, creating 20,000 positions and reaching annual sales higher than 20 billion euros by 2030 as it seeks management in the escalating marketplace.

The PowerCo device will handle VW’s world-wide battery creation and analysis from raw product mining to recycling, and tasks which include electricity storage units, the carmaker claimed at the groundbreaking ceremony for its very first European battery cell manufacturing facility.

“Currently is a superior working day for the automotive market in Germany,” Chancellor Olaf Scholz claimed in a assertion ahead of his speech at the ceremony.

Volkswagen has continuously said creating enough batteries to electrical power all vehicles is by much the major problem of the shift to electric powered cars, and has rolled out a system to create factories with a joint capability of 240 gigawatt hrs (GWh) by 2030.

This includes six plants in Europe, of which Salzgitter is the “blueprint” for VW’s long term standardized manufacturing services, and two in North The usa.

“What we have proven a million situations around with Volkswagen motor vehicle platforms: standardising and scaling up will allow for speed and price optimization with the highest good quality,” claimed PowerCo Chief Govt Frank Blome.

At the ceremony, Volkswagen also introduced the standardised battery mobile it experienced declared in 2021 and which is to be employed in up to 80% percent of the group’s designs.

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(Reporting by Zuzanna Szymanska)

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