While the relevance for electric vehicle increases, Volkswagen planning for a joint venture for battery supply. This latest move from German company is to speed up the customers' interest in electric vehicles.
People tend toward electric vehicles slowly and not yet ready to enter the electric automobile usage due to the lack of enough operating range and sufficient battery recharging times. Very less number of infrastructure for charging electric vehicles also make the issue more intense, and this is the scenario led Volkswagen to think about a venture to bring forth more efficient as well as sufficient battery production.
VW has already made five strategic partners, and they are Sweden’s Northvolt, South Korea’s SKI, LG Chem, and Samsung SDI, and China’s CATL. The company is planning to buy battery cells worth 50 billion euros ($56.57 billion).
“Not every supplier is convinced that electric mobility will come on such a large scale. You need to spend more time convincing them to invest in the auto industry,” Volkswagen board member Stefan Sommer said.
VW investing the amount for a long time scale as the company needs battery production capability worths 150-gigawatt hours in Europe alone. At the same time, the same capacity needs to be supplied in Asia too. As the momentum toward considerably slow, this will be an essential battery production capacity. Whereas the years after 2025, will be rapid and by 2030 this figure will reach 300-gigawatt hours.
The company has already introduced its electric cars in the market, and it is going to focus more on electric cars. It is already have decided to bring more by building 16 factories meant to produce electric vehicles only. By mid-2023, VW, Skoda, Audi, and Seat brands will introduce 33 different electric cars.
According to Sommer, a new confusion may appear in the producers' side, and it lies between going with a new smartphone or making a new battery factory. The ventures are still suspicious about the market.
For the European and Chinese market the company will be using different composition for the electric battery cells, Sommer said. Volkswagen also plans to build battery cell manufacturing plants under the company, he added.
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