Volkswagen is planning to move into the battery cell manufacturing market with an investment of €1 billion in a new production facility in Europe.
The automotive giant will set up the battery cell production facility in the Lower Saxony region of its native Germany.
The company is working with the local government to choose a suitable location for the factory complex, and is likely to partner with businesses from relevant sectors.
The decision comes soon after the company unveiled an electric version of globally recognized Golf model of car, which it calls “e-Golf”.
Hans Dieter Pötsch, supervisory board chairman of VW, says: “As part of our comprehensive electrification offensive we plan to secure our battery capacities through strategic partnerships.
“At the same time, we wish to expand our production capacities in Europe to support our growth plans. Given the ever-greater complexity of our industry and the related challenges, it is essential to focus on our core business.”
VW CEO Herbert Diess says: “The automotive industry is in the midst of a fundamental transformation, a transformation that we are also vigorously driving forward at Volkswagen. We are pressing ahead with the electrification and digitalization of our fleet like no other automotive company.
“At the same time, we are building up innovative business areas over the coming years to cater for innovative mobility services. This is about aligning the Volkswagen Group to play a decisive role in shaping the sweeping transformation of our industry. Today’s decisions are important milestones for the future of Volkswagen.”
Bernd Osterloh, chairman of the general works council, says: “The employee representatives on the Supervisory Board welcome the decisions, which they expressly support. These decisions set the course for the sustainable further development of secure jobs as well as profitability.”
The Minister President of Lower Saxony, Stephan Weil, says: “Today’s decision by the Volkswagen Supervisory Board marks a breakthrough for battery cell production in Lower Saxony.
“The production of battery cells is crucial for the Number 1 automotive stronghold. These are positive signals for the Salzgitter location. I am very optimistic that battery cells can be produced in Germany at competitive conditions.”