Volkswagen begins construction of the first battery factory in Germany

Volkswagen begins construction of the first battery factory in Germany

It was in Salzgitter that the Volkswagen group began work on Germany’s first battery factory. The site will produce cells for 500,000 vehicles per year from 2025.

German Chancellor Olaf Scholz was present for the start of construction of VW’s first battery factory in Germany.

In its race towards the electric transition, Volkswagen has launched work on its first battery factory in Germany, the cornerstone of the carmaker’s strategy to strengthen in this production currently dominated by Asia.

From the future plant in Salzgitter, central Germany, Volkswagen “lead the battery offensive worldwide“, said the boss of the group Herbert Diess in a great ceremony.

At the conclusion of the event, it is based on the staging ofElon Musk in his Tesla factories, Herbert Diess symbolically connected several cells that power a large battery.

Batteries for 500,000 vehicles per year

Volkswagen has set itself the ultimate goal of becoming the world’s largest electric car manufacturer by 2025, injecting tens of billions of euros into this rapid revolution.

Two billion euros will be invested in the new factory that will operate in 2025, with the aim of producing 500,000 car batteries per year.

Read also: The VW plant in Emden is electrified

If Germany and Europe do not want to be left behind by the US and China, we must pay more attention to the technology of the future.“, added the boss of Volkswagen, who does not hide his admiration for the invention of the American Tesla, the pioneer of the electric car.

Tesla came to challenge him on his land this year by opening a car factory near Berlin which the American group wants to complete with a battery factory.

Six battery factories in Europe

In Salzgitter, Volkswagen has produced more than 60 million combustion engines since 1970,”half of all engines” of the group, recalled the German Chancellor Olaf Scholz during the celebration.

The site is now set to become the hub of Volkswagen’s electric ecosystem. Olaf Scholz noted that Europe’s largest economy aims to have 15 million electric vehicles in circulation by 2030.

Read also: Volkswagen and Siemens invest in charging stations

Volkswagen wants to be the first European manufacturer to produce some of its own batteries and thus become less dependent on Asian production, where China and Korea dominate this expertise.

The group aimsthe pole space“including six large-scale European power plant projects with a capacity of 40 GWh each and one in the United States.

Europe accounted for only 3% of global battery production in 2020, but has ambitions to reach and is targeting 25% of the market by the end of this decade, with several factory openings planned over the course of the decade. Stellantis Group plans to build a total of five large battery factories in Europe and North America.

Ending Asian Addiction

Not long ago, many people in Germany thought that battery cells were foreign parts that we could import from Asia whenever we needed them.“, emphasized Olaf Scholz.

Gold, “in some strategic areas, the reliability of global supply chains poses a serious risk – a very serious risk – to battery cells.“, he added.

Many companies have suffered, since the Covid-19 pandemic, from equipment shortages linked to the distribution of global supply chains, pushing Europe to want to strengthen its independence in certain industrial sectors. (together with AFP)