VW aims for 6 EV battery cell plants in Europe by 2030
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Final Assembly
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • The first 2022 GMC Hummer EV Edition 1 sold for $2.5 million.
      Hummer EV, Bronco raise big money
      Tesla customers say the overcharges range from $37,000 to $71,000, according to CNBC.
      Buyers like Tesla, but not enough to pay double
      Ford created this gas-turbine truck for the 1964 World’s Fair.
      Ford's Big Red lives — parked in a garage
      Evergreen Subaru is moving to a larger facility, but the store won’t be as big as the ship that got stuck in the Suez Canal.
      Was stuck ship headed for a Subaru store? (Spoiler: No)
    • GAC Motor Co. launched sales of a new full electric crossover, the Aion Y, in March.
      New-vehicle sales rebound 75% in March from virus-hit 2020
      Wuling launched sales of its first pickup, the Zhengtu, on March 18.
      GM Q1 sales rebound but fall short of pre-COVID level
      The Ford Equator SUV arrived in the Chinese market on March 28
      Ford Q1 sales surge 73% over virus-hit 2020
      Xpeng P7 sedan on display at an auto show
      EV maker Xpeng setting up third plant to meet demand
    • As EV output explodes in China, e-axle drive assembly automates
      Plus to roll big rigs on a ‘continuum' toward self-driving future
      Lidar moves beyond vehicles to underpin a reimagined logistics chain
      Factories embrace Industry 4.0
    • Waymo self-driving van
      Waymo co-CEOs bring double vision for self-driving future
      Uber driver
      Uber, Lyft use rides to vaccines to get drivers, customers back on the platform
      Uber and Lyft
      Uber dangles higher pay to lure U.S. drivers back but warns it will not last
      Lidar system from Innoviz
      Shares of lidar sensor startup Innoviz rise in trading debut
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Beyer Auto Group COO John Altman, left, with Fixed Operations Director Patrick Brooke at the group’s Volvo dealership in Falls Church, Va.
      Dialing service customers brings them back
      Lexus, Mirai get new advanced technologies
      On the baby front, Volvo takes the lead
      A standalone showroom is one optional improvement dealers can choose to show off the SUV line. Those who do get a slight increase in Bronco allocation.
      view gallery
      8 photos
      About 100 Ford dealers to invest in dedicated Bronco stores
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Citroen
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Opel
      • Peugeot
      • Ram
      • Vauxhall
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Mach-E
      For Ford, 3rd-party charging network must improve to reap Mustang Mach-E potential
      VW logo with reflection
      VW lied to sell diesels; now it lied to sell EVs
      265725_XC90_Inscription_in_Birch_Light.jpg
      Volvo targets top talent in U.S., China with generous parental leave policy
      Fisker gets a rare second chance to build his own car company
    • VW's Joke Is On You
      Joke Is On You
      In case of supply chain woes, break glass
      view gallery
      3 photos
      Leo Michael Cartoons - Q2 2021
      Leo Michael: There's Nothing You Can Do!
      Nothing You Can Do
      Tesla's 'Technoking'
      Tesla's 'Technoking'
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • April 6, 2021 | For Volkswagen, authenticity is the only path forward
      March 30, 2021 | Tesla “changes” car industry
      March 23, 2021 | Remote work will continue after the pandemic
      March 16, 2021 | Industry offers warning to Apple
    • Dan Shine
      Service drive can lift dealerships as source of used-vehicle inventory
      Dave Versical
      From doubts to duped: We won't be fooled again
      Willard J. De Filipps
      Dealing with a drop in LIFO reserves
      VW logo with reflection
      VW lied to sell diesels; now it lied to sell EVs
    • Why Xiaomi holds promise of becoming formidable EV player
      Geely’s new EV push is decidedly new age
      Charging poles installed outside a Tesla store in downtown Shanghai.
      Unreliable public EV charging sites prompt automakers to take wheel
      VW Group's playbook to dominate EV market
    • ‘Voltswagen' April Fools' gag far from funny
      Less is more in lineups as well as on lots
      Electric vehicle charger
      Electric vehicle hype opens door to short sellers
      Address vaccine doubts at work to lead U.S. back
    • There goes VW recycling again
      Mixed-use plan a winner
      EV adoption in U.S. shouldn't be forced
      Electric is the way to go for mail trucks
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: EV battery decision looms for SK Innovation, LG Chem
      AutoNews Now: Ford skipping summer shutdown at many U.S. plants
      Mercedes leads Lexus, BMW in tight luxury race
      AutoNews Now: Chevy's electric Silverado to have more than 400 miles of range
    • First Shift: Hyundai to idle more output due to chip shortage
      First Shift: Biden's EV plan said to include $100B for consumer rebates
      First Shift: Stronger auto emissions rules coming by July, EPA head says
      First Shift: Automakers urge U.S. government to help with chip crisis
    • Virtual sales manager Jay Barger
      'Glued to a phone': Acura store's virtual sales boss lifts deliveries, efficiency
      One man’s journey from homelessness to thriving dealer
      Bert Ogden Auto Group
      How a Texas group is cutting costs, saving millions
      COVID, chips and checks: Sales headwinds and tailwinds for 2021
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Fixed Ops Journal Forum
    • Shift: Mobility at a Crossroads
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
      • Register for the 2021 Best Dealership To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Cars.com
    • DealerPolicy
    • Gentex
    • IHS Markit
    • Remember Group
    • Reputation.com
    • Ricardo: Dave Shemmans
    • Ricardo: Marques McCammon
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
    • DealerSocket: 5 steps to modernizing the buyer's journey
    • Epic Games: Real-time tech is the next frontier of automotive
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Mobility Report
March 15, 2021 08:40 AM

VW aims for 6 battery cell plants in Europe by 2030

Factories will have an annual production capacity of 240 gigawatt hours per year

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    VW battery production in Salzgitter

    VW will expand battery production at its plant in Salzgitter, Germany.

    FRANKFURT  -- Volkswagen Group plans to have six battery cell production plants in Europe to secure supply for its electric vehicle push.

    The plants will have a production capacity of 240 gigawatt hours per year, VW said during its Power Day on Monday.

    "Together with partners, we want to have a total of six cell factories up and running in Europe by 2030, thus guaranteeing security of supply," VW's technology and procurement chief, Thomas Schmall, said in a statement.

    VW said it will build the factories alone or with partners.

    The first two factories will operate in Skelleftea, Sweden starting in 2023, and in Salzgitter, Germany, starting in 2025.

    The third will be in France, Spain or Portugal and would open by 2026, Schmall said. Poland, Slovakia and the Czech Republic were possible locations for the fourth factory in 2027. "It depends on where we get the best set-up in the region," Schmall said.

    The Swedish factory, built with battery startup Northvolt, will expand its capacity to 40 gigawatt-hours and focus on unified premium battery calls, VW said.

    VW will buy Northvolt's share of their joint venture battery factory in Salzgitter. The factory will produce cells for the high-volume segment starting in 2025. Annual production capacity of up to 40 GWh per year is also planned for Salzgitter.

    Volkswagen did not specifically say how much its plans to expand battery production will cost.

    While the first two factories are already reflected in Volkswagen's financial planning, the group is currently in "deep discussions" about how the subsequent plants fitted with financial targets, Schmall said.

    He added if VW needed to increase its role in battery cell production then the group would be able to bear that cost.

    The push will cost $29 billion and would make VW and its partners the world’s second-largest cell producer after China’s Contemporary Amperex Technology Co. Ltd., according to BloombergNEF.

    Prismatic battery cells

    VW unveiled plans to have a new unified prismatic battery cell from 2023, which will support cost cuts generated by the raised level of in-house cell production and could impact its current suppliers.

    Electric vehicle makers, including Tesla, are using cylindrical battery cells, which resemble flashlight batteries and are relatively inexpensive and easy to manufacture.

    Prismatic cells, which resemble a thin hardcover book, are housed in a rectangular metal case and are more expensive. Pouch cells, another alternative, are thinner and lighter, and resemble a flexible metal mailing envelope.

    "On average, we will drive down the cost of battery systems to significantly below 100 euros ($119) per kilowatt hour," Schmall said. "We will use our economies of scale. This will finally make e-mobility affordable and the dominant drive technology."

    VW is also researching solid-state batteries that it says are cheaper to assemble and allow for faster charging.

    Northvolt said on Monday it had received an order from VW worth more than $14 billion over 10 years. The Swedish company, founded in 2016 by former Tesla executive Peter Carlsson, aims to take on major Asian players such as CATL and LG Chem. It targets a 25 percent market share in Europe by 2030.

    Fast-charging networks to grow

    VW said Monday that it will also invest 400 million euros ($477 million) by 2025 to build out much-needed charging infrastructure in Europe, after the region overtook China in EV sales last year. Fast-charging in Europe will grow fivefold to 18,000 stations, helped by cooperations with BP in the UK, Iberdrola and Spain and Enel in Italy as well as VW’s existing Ionity consortium.

    In North America, VW is adding 3,500 stations for this year and 17,000 points in China by 2025. Cooperations on charging as well as strategic partnerships on batteries will help VW safeguard financial targets including a 6 percent capital investment ratio by 2025 and an adjusted annual net cash flow of more than 10 billion euros, the carmaker said.

    A lack of infrastructure is still seen as a major hurdle to the mass adoption of battery-powered cars.

    VW plans to make 26 million fully electric cars by 2030, highlighting concerns over battery cell costs, capacity constraints as well as raw material shortages. The automaker said earlier this month that it wants full-electric vehicles are expected to account for more than 70 percent of VW brand's European vehicle sales by 2030 and more than 50 percent in the U.S. and China, as part of its 'Accelerate' strategy.

    As carmakers scale up EV offerings, Tesla and other new entrants like Nio are stepping up their plans. Tesla expects to add a battery-cell factory to the car-assembly plant under construction near Berlin. The site will initially have a capacity of more than 100 gigawatt-hours a year and eventually ramp up to as much as 250 gigawatt-hours, CEO Elon Musk said during a battery conference in November.

    Reuters and Bloomberg contributed to this report.

    RECOMMENDED FOR YOU
    Waymo co-CEOs bring double vision for self-driving future
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Waymo co-CEOs bring double vision for self-driving future
    Waymo co-CEOs bring double vision for self-driving future
    Uber, Lyft use rides to vaccines to get drivers, customers back on the platform
    Uber, Lyft use rides to vaccines to get drivers, customers back on the platform
    Uber dangles higher pay to lure U.S. drivers back but warns it will not last
    Uber dangles higher pay to lure U.S. drivers back but warns it will not last
    Sponsored Content: VIDEO: Cars.com CEO talks state of the industry, dealer innovation
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 4-5-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    Read the issue
    See our archive
    MOBILITY REPORT NEWSLETTER: Sign up for our Thursday afternoon Mobility Report newsletter, your one-stop shop for the latest developments at the intersection of transportation and technology.
    WEEKLY NEWSLETTER: Sign up to start your week with the top stories from the latest issue of Automotive News, delivered to your inbox first thing each Monday morning.
    DAILY NEWSLETTER: Sign up to get the top stories of the day in your inbox every business weekday afternoon.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Citroen
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Opel
          • Peugeot
          • Ram
          • Vauxhall
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Final Assembly
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Fixed Ops Journal Forum
        • Shift: Mobility at a Crossroads
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
          • Register for the 2021 Best Dealership To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Cars.com
        • DealerPolicy
        • Gentex
        • IHS Markit
        • Remember Group
        • Reputation.com
        • Ricardo: Dave Shemmans
        • Ricardo: Marques McCammon
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
        • DealerSocket: 5 steps to modernizing the buyer's journey
        • Epic Games: Real-time tech is the next frontier of automotive
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds