The German automaker said on Monday that it plans to build six “gigafactories” in Europe by 2030, with a total production capacity of 240 gigawatt hours per year. That’s enough to power nearly 4 million Volkswagen ID.3 electric vehicles, according to a spokesman. The first two battery factories will operate in Skellefteå, Sweden, and Salzgitter, Germany.
Volkswagen is also adding a large number of new electric vehicle charging points to networks across Europe, the United States and China, the company announced at an event on Monday.
The strategy of Volkswagen’s electric vehicles revolves around reducing the cost of battery systems through a new unified battery cell, which will be launched in 2023 and installed in up to 80% of the group’s electric vehicles. The company also plans to recycle up to 95% of the raw materials involved in the production of batteries.
“The one-size-fits-all model for almost all cells will dramatically reduce battery costs by up to 50% compared to today,” said CEO Herbert Diess at Monday’s event. “Lower battery prices mean more affordable cars, which makes electric vehicles more attractive to customers.”
Battery costs, which represent a large proportion of the total cost of an electric car, will be gradually reduced by up to 50% on basic models and by up to 30% on standard models, Volkswagen said in a statement.
The company also needs a secure supply of battery cells as production of electric vehicles increases. Volkswagen (VLKAF) started to gain ground in Tesla (TSLA) in its attempt to become the world’s largest producer of battery-powered electric vehicles. The company sold 231,600 battery-powered electric vehicles in 2020 – less than half the number of sales that Tesla made, but an increase of 214% over the previous year.
“E-mobility has become the main business for us,” said Diess. The company’s new strategy would guarantee “a long-term pole position in the race for the best battery and the best customer experience in the zero-emission mobility era,” he added.
The company’s battery offensive is being accompanied by a major expansion of the fast-charging network.
In partnership with BP (BP), From Spain Iberdrola (IBDRY) and Italian energy company Enel (EDCFF), Volkswagen plans to operate around 18,000 public charging points in Europe by 2025, compared with about 3,600 today. The automaker estimates that its network will cover about a third of the total demand expected on the continent at that time.
Volkswagen is also expanding charging points in the United States and China. Electrify America, a subsidiary, is planning to have about 3,500 fast charging points in North America by the end of the year. In China, Volkswagen is targeting a total of 17,000 fast charging points by 2025.
Tesla, by comparison, currently has 20,000 fast charging points worldwide.
Starting in 2022, Volkswagen electric vehicles will also support technology that allows them to connect to private, commercial and public energy systems. “Electric vehicles will become mobile energy banks,” said Diess.
.Source
Related
