Volkswagen will Invest $20 Billion into its Own Battery Development

July 14th, 2022 by

Volkswagen Factory

Volkswagen is ready to invest $20.38 billion into constructing its electric vehicle batteries. The $20 billion investment will provide 20,000 jobs. Additionally, the $20 billion investment will also return to the automaker in annual sales upward of $20 billion. Furthermore, VW will create a new company called Power Co to oversee the automaker’s efforts to secure capacity, materials, and supplies to fulfill its EV goals. 

The new company, Power Co, will act as Volkswagen’s battery management supply chain. Additionally, Power Co will investigate and develop new technologies. So it doesn’t matter if it’s the mining of raw materials or the batteries’ end-of-life recycling, Power Co will have Volkswagen’s back. The German automaker’s investment comes off the heels of a monumental ceremony. VW recently celebrated opening its first battery plant in Salzgitter, Germany.

“The battery cell business is one of the cornerstones of our New Auto strategy which will make Volkswagen a leading provider of the sustainable, software-driven mobility of tomorrow. Establishing our own cell factory is a megaproject in technical and economic terms. It shows that we are bringing the leading-edge technology of the future to Germany!”

-Volkswagen CEO, Herbert Diess 

In 2021, Volkswagen revealed its plans to construct a six-battery cell production plant for Europe by 2030. The battery cell production plants would also include a Salzgitter and Skelleftea, Sweden facility. In addition, VW’s third plant will reach the soils of Valencia, Spain. Lastly, the fourth plant will come to life in Eastern Europe. Moreover, Volkswagen will explore other plans for expanding North America as the future home of its gigafactories. The North American plant will hold a production capacity of 240 gigawatt-hours annually.   

By 2023, Volkswagen will unravel a newly unified prismatic cell design of its batteries that will be installed throughout the automaker’s lineup. The VW goal is to have a unified cell design for 80 percent of the automaker’s lineup by 2030. Additionally, the German automaker has contracts with two major battery producers, Samsung and CATL. The ‘Das Auto’ automaker also supports a battery producer in San Jose, California, called QuantumScape. 

Volkswagen is the second-largest car manufacturer in the world regarding volume. So ultimately, it comes as no surprise that the transition to electric vehicles wasn’t painless. Since VW introduced the world to the ID family, the automaker has sold out of its entire electric lineup in Europe and North America. However, anyone looking to purchase an electric vehicle from the automaker will not have to wait too long; expect to see an expansion of the magnetic cars by 2023.  

Come Test Drive Your Future Volkswagen ID.4 at Sunrise Volkswagen

There’s a beautifully designed Volkswagen ID.4 waiting for you here at Sunrise Volkswagen. It doesn’t matter if you’re in t”Production of the ID Buzz at the VWN plant in Hanover has restarted as scheduled on 4 July 2022.”he market for that new leather smell or that squeaky-clean certified pre-owned, Sunrise Volkswagen provides that hometown customer service you’re sure to love. Volkswagen is famous for its German high-tech engineering and its affordable prices. So if you’re facing some financial hardships, please feel free to take advantage of our finance center. However, if you aren’t ready to transition into a pristine vehicle, our service department will have your car running like new at an unbeatable price. So make your way over to Sunrise Volkswagen, our staff is committed to your satisfaction.

We look forward to serving you!

Photo Source/Copyright: Volkswagen Newsroom

Posted In: Volkswagen