https://www.engineeringnews.co.za

The money is there, Volkswagen CEO says of planned battery cell push

7th September 2021

By: Reuters

  

Font size: - +

Volkswagen is optimistic that there are sufficient funds, internal or external, to pull off its ambitious plan to build six large battery factories across Europe with partners by the end of the decade, its chief executive said.

"The required capital is available in the market. Northvolt has shown this," Herbert Diess said on the sidelines of the IAA Munich car show.

Swedish battery cell maker Northvolt, in which Volkswagen owns a 20% stake, raised $2.8-billion in June in one of the biggest private placements in Europe this year that was led by four Swedish pension fund and OMERS Capital Markets.

"Today, the returns that can be earned with battery production are high. It is a demand-driven market and stays a demand-driven market for the foreseeable future," Diess said.

Building new battery cell plants, which usually cost around 2-billion euros ($2.4-billion) apiece, are a key requirement for Volkswagen's vision to become the world's leaders in electric vehicles (EV).

Volkswagen in March outlined its battery cell push, which it plans to pull off with partners, but has so far not specified exactly how much it will cost and what share the carmaker plans to fund on its own.

The six European factories will have joint production capacity of up to 240 GWh a year, with the first 40 GWh coming from Northvolt from 2023.

The second plant will be built in the city of Salzgitter by 2025 in partnership with China's Gotion High-Tech, in which Volkswagen owns a 26% stake, with Spain and eastern Europe possible locations for a third and fourth plant.

Two more plants are to be built in subsequent years but Volkswagen has not specified where in Europe they will be located.

Diess in May said that parts of Volkswagen's battery activities could be separately listed in an initial public offering.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

AirNox Pty Ltd
AirNox Pty Ltd

AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...

VISIT SHOWROOM 
ABB Electrification
ABB Electrification

Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.072 1.193s - 142pq - 2rq
Subscribe Now