The Volkswagen Group has announced that it intends to open six battery factories for electric vehicles across Europe by 2030, and that one of those sites could be in Portugal. Spain and France are also competing to secure one of these battery production plants.
The plan was unveiled at the Volkswagen Group’s first Power Day and is part of the German group’s push to gain an edge in the electric car market by investing heavily in battery technology.
Alongside this strategy, the group has already put partnerships in place with energy-sector companies including Iberdrola in Spain, Enel in Italy and BP in the United Kingdom.
“Electric mobility has won the race. It is the only solution to quickly reduce emissions. It is the pillar of Volkswagen’s future strategy and our goal is to secure the pole position on the global battery scale,” said Herbert Diess, head of the Volkswagen Group.
New generation of batteries arrives in 2023
Volkswagen Group said that from 2023 it will begin fitting its cars with a new generation of batteries built around a different architecture: a unified cell design. The group expects this technology to feature in 80% of its electric models by 2030.
As well as enabling faster charging times, greater power and improved efficiency, this battery format is also presented as a stronger stepping stone for the - inevitable - shift to solid-state batteries, which are expected to mark the next major leap in battery technology.
Schmall also explained that by refining this type of battery cell, introducing innovative manufacturing methods and expanding the recycling of materials, the group can cut battery costs by 50% in entry-level models and by 30% in higher-volume models. “We will reduce battery costs to levels significantly below €100 per kilowatt hour.”
Six battery factories planned
With a focus on solid-state battery technology, Volkswagen has now confirmed it will build six gigafactories in Europe by 2030. Each plant will have annual production capacity of 40 GWh, leading to total European output of 240 GWh per year.
The first facilities will be in Skellefteå, Sweden, and Salzgitter, Germany. The German site, not far from Volkswagen’s home city of Wolfsburg, is currently being built. The northern European plant already exists and will be upgraded to increase capacity, with completion expected in 2023.
Battery factory on the way to Portugal?
During Monday’s event, Schmall said the Volkswagen Group wants a third factory in western Europe, adding that it would be located in Portugal, Spain or France.
It is worth recalling that Spain’s government recently announced a public–private partnership to install a battery factory in the neighbouring country, with SEAT, Volkswagen and Iberdrola included in the consortium.
Herbert Diess, President of the Volkswagen Group, attended a ceremony in Catalonia alongside Spain’s King Felipe VI and Prime Minister Pedro Sánchez. The three oversaw the announcement of the partnership, which will involve the Madrid government and Iberdrola, as well as other Spanish companies.
However, this remains an intention rather than a final commitment, since Madrid wants to place the project under funding from its Recovery and Resilience Plan, which is not yet secured. As a result, Volkswagen’s decision on the third site is still unresolved, as Thomas Schmall reiterated today at the “Power Play” event, stating that “Everything will depend on the conditions we find in each of the options”.
A battery factory in eastern Europe is also scheduled for 2027, along with two further plants whose locations have not yet been disclosed.
Comments
No comments yet. Be the first to comment!
Leave a Comment