Volkswagen, Partners to Invest over $20 Billion in Battery Business

By Tech News Desk
July 11, 2022
Last Updated: July 11, 2022

Automobile, Technology & AI

Volkswagen is celebrating the start of a path that will lead them, as a first step, to making their own batteries by 2025. A path that will begin in 2026 with the opening of the Sagunt factory and continue until 2030, when they will have six sites in Europe producing 240 GWh per year to power their electrical deployment, which includes the release of at least 70 electric cars. This path starts now with the creation of PowerCo, the company that will run its battery business, and the laying of the first stone of the Salzgitter factory, which will be the center of your network for making parts.

PowerCo will run not only the business of making batteries, but also everything that happens along the value chain of that part, from the raw materials to the batteries that will be put in its cars. By the year 2030, PowerCo will have spent more than €20 billion to grow into a company that makes exactly €20 billion in sales every year. By that time, the new company hopes to have hired 20,000 people. Herbert Diess, CEO of the Volkswagen Group, says, “Today we reach a strategic goal.” “The battery business is one of the pillars of our New Auto strategy, which will make us a leading provider of sustainable mobility in the future,” he says.

Since the beginning, PowerCo has been in charge of managing international operations related to batteries. This includes everything from developing new technologies for battery parts to vertically integrating the value chain and supplying factory equipment. Frank Blome is now the CEO of PowerCo. He will work with Sebastian Wolf, who is the COO, Kai Alexander Müller, who is the CFO, Soonho Ahn, who is the CTO, Jorg Teichmann, who is the Purchasing Director, Sebastian Krapoth, who is the HR Director, and Soonho Ahn, who is the CTO.

Salzgitter’s foundation stone

The Volkswagen Group’s battery company will have its headquarters in Salzgitter, which is also where one of the six factories that the group wants to have running in Europe in the next ten years will be built. However, they have confirmed that they are looking into the possibility of building more gigafactories in North America. German Chancellor Olaf Scholz says that Volkswagen shows us what the future of green transportation could look like. “Together, we are building the foundations for Salzgitter’s future,” he says.

At the ceremony to start building the plant, where 2 billion euros will be spent and 5,000 people will work, the Volkswagen Group showed off its plan to standardize the way batteries are made. From the consortium, they say that it is like making cars. “The way we make batteries will be based on what we have done millions of times with car platforms like the MQB and MEB. So, we’ll be able to combine speed and cost-effectiveness while keeping the highest level of quality,” he says. Frank Blome. This standardization will have an effect on products, processes, and technology, as well as on equipment, facilities, and infrastructure. PowerCo says that all of the energy for the six factories will come from clean sources.

Volkswagen has shown off the prismatic battery that it said it would show off at Power Day 2021. They explain that this type of battery can be made with different kinds of chemicals and will be used in 80% of all electric cars made by the Volkswagen Group. Salzgitter wants to start making them in 2025, and the rate will keep going up until it reaches 40 GWh per year, which is enough for 500,000 cars. Volkswagen confirms that the prototypes they’ve made so far have “promising” performance in terms of range and charging speed, and that synergies between factories will allow them to cut the cost of parts by 50%.

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