VW plans to reduce the cost of batteries by 30-50% and build six factories in Europe with a total capacity of 240 GWh per year

VW plans to reduce the cost of batteries by 30-50% and build six factories in Europe with a total capacity of 240 GWh per year

Volkswagen held an event reminiscent of Tesla Battery Day. During the presentation, the automaker talked about its plan to reduce the cost of batteries and provide itself with the necessary volumes of this key component of electric vehicles. The source quotes Thomas Schmall, member of Volkswagen’s technology board of directors:

We strive to reduce the cost and complexity of the battery while increasing mileage and power. This will finally make electric mobility affordable and dominant in road transport. In addition to the planned in-house production, significant economic benefits are expected primarily from the use of the new unified cell. It is planned to be released in 2023, and in 2030 it will be used in 80% of electric vehicles of all VW Group brands. Further savings will be achieved through cell optimization, innovative production methods, and recycling. Thus, Volkswagen aims to gradually reduce the cost of batteries in the entry-level segment by up to 50%, and in the mass-market segment by up to 30%. We will use economies of scale for the benefit of our customers when it comes to batteries. On average, we will reduce the cost of battery systems to below € 100 per kWh.

Specifically, six new battery gigafactories are planned to be built in Europe alone by the end of the decade. Their performance will allow the annual production of batteries with a total capacity of 240 GWh.

Along with a plan to ensure uninterrupted supply of batteries, Volkswagen also announced new partnerships to accelerate the rollout of charging infrastructure for electric vehicles. Agreements were signed with BP (UK), Iberdrola (Spain) and Enel (Italy). By 2025, the German automaker intends to open 18,000 public fast charging points in Europe.

In China, the VW Group plans to create 17,000 fast charging points by 2025, using a joint venture with CAMS.

In North America, the VW Group is working with Electrify America and Electrify Canada, which plan to have around 3,500 fast charging points by the end of the year.

VW plans to reduce the cost of batteries by 30-50% and build six factories in Europe with a total capacity of 240 GWh per year

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