Volkswagen Group makes further investments in automobile battery supplies
The joint venture between Volkswagen Group and the Swedish battery manufacturer Northvolt AB is gaining momentum! Both teams have decided that VW will erect the buildings and infrastructure for the "Northvolt Zwei" factory, which will produce lithium-ion batteries. There are about $500m USD invested in the project and it is expected that the joint venture will then rent the factory space. Furthermore, battery cell production is scheduled to commence in early 2024 with an initial production capacity of 16-gigawatt hours. Neat!
Back in September 2019, VW and Northvolt established a joint venture in order to prepare for the large-scale production of lithium-ion batteries in Germany. Volkswagen's endeavor to erect the structures and infrastructure is of key importance. Construction work at the site is scheduled to commence before the end of the year.
As you might know, Volkswagen Group is amassing technological expertise in the field of battery cell production and technologies as part of brand's electrification process. Furthermore, VW maintains its strategic relations with numerous producers in order to retain its battery supplies in all world areas. At the moment, these suppliers are LG Chem, Samsung, and SKI for Europe as well as CATL for China and Europe. Additionally, SKI will also supply battery cells for the US market. In Europe alone, VW expects annual demand of over 150-gigawatt hours from 2025 onwards with demands in Asia at a similar level.