VW Group invests €450 million in batteries

The Volkswagen (VW) Group will invest 450 million euros in a 16-gigawatt-hour battery cell factory in Salzgitter, Germany.

VW Group invests €450 million

The production of battery cells will start in 2024. In a joint venture between Volkswagen Group and the Swedish battery producer Northvolt AB, it has decided that the Volkswagen will deal with the buildings and infrastructure for “Northvolt Zwei” factory that is to produce lithium-ion battery cells. This will finance synergies at the Salzgitter site based on the existing Centre of Excellence for Battery Cells.

The group is also making relations with the producers to secure its battery supplies all over the world. At present, the suppliers are LG Chem, Samsung, and SKI for Europe as well as CATL for China and Europe. The SKI will also supply battery cells for the US market.

The Volkswagen expects annual demand for over 150 gigawatt-hours from 2025, with demand in Asia at a similar level.

“We are optimizing the Volkswagen Group’s strategic position in the key future field of batteries,” said Stefan Sommer, Volkswagen Group Board Member for Components and Procurement and a member of the Northvolt AB Board of Directors. “In addition to a very secure supply base with external producers, we are also systematically building up further capacities.”

This joint venture between Volkswagen and Northvolt was made in September 2019 to produce the large-scale production of lithium-ion batteries in Germany.

The Volkswagen Group is developing the I.D family based on the new modular electric drive matrix (MEB). The ID. CROZZ is an all-electric vehicle which is for the Indian market.

The ID.CROZZ is a company’s first electric-powered four-door coupe. It has an electric drivetrain delivering power of 225kw which gives a range of 500 km on a full battery charge. It offers a top speed of 180 km per hour. ID CROSS employs an 83kWh lithium-ion battery that generates a peak power of 306ps which can be achieved when charged to 80 per cent in 39 minutes.

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