According to a source close to VW’s senior management indicated that the first lithium-ion battery factory that can supply the massive EV roll-out of the said car giant could be built in China. This is because of the impending and massive demand of the said factory.
VW has announced that in 2025, they intend to produce 2-3 million plug in cars. This will be rolled out in over their 10 brands under the VW Group. There will be some 30+ new all electric models that would need around 150 GWh of batteries. This is technically a lot which is more than any 3rd
party provider can supply to the car giant and the others in the near future.
Because of such plan, the total investment with regards to such and building the battery could be up to 20 billion euros.
“Whereas current global automotive cell capacity is estimated at around 27 gigawatt hours of supply for the entire industry, VW believes it alone will need the equivalent of 150 GWh just to power its own fleet. “That is roughly 10 battery plants, each requiring investments of 2 billion euros, so that’s 20 billion in total,” the source said.”
As to why they chose China would be left to the decision of the said car giant. Yet we cannot deny, China has a lot of advantages over other countries be it in Asia and the rest of the world.
For one, the market is now the largest with regards to plug-in sales worldwide. Furthermore, they have strong government incentives for any companies to build there. And lastly, in order to get those incentives, a JV partner would be needed. This could mean that VW can only pay half the bill in order to create the infrastructure.
“When asked where all these plants might be built, the person responded “China is likely one of the first, since we think electromobility will catch on there as a trend much sooner given the government’s relentless push.””
This massive plan would be a win-win situation for the company and more so for China. Not only are they employing more people in order to build their gigafactory but also this is a good manifestation that indeed the car brand is trying to push with electric vehicles in the near future. At least with this move, they can guarantee that the scandal that occurred to them before would never happen again.