Volkswagen Group's EV battery effort keeps its execs up at night

Volkswagen Group is facing the daunting task of establishing a prominent battery manufacturer to meet the growing demand for its electric vehicles.

This endeavour has become so challenging that it is causing sleepless nights for those at the automaker.

To support its transition away from traditional combustion engines, VW is in the process of creating cell plants in Germany, Spain, and Canada.

In order to achieve this goal, VW has committed 20 billion euros ($22 billion) of investment by 2030 to transform its PowerCo battery unit into a major player in the industry.

The company plans to have a workforce of 20,000 employees and enough capacity to produce 3 million EVs annually.

Looking ahead, VW aims for increased profitability and Chief Financial Officer Arno Antlitz has expressed openness towards eventually selling shares in PowerCo.

Mercedes-Benz plans to utilize a planned factory in Hungary owned by Contemporary Amperex Technology Co. Ltd., while also partnering with Stellantis and TotalEnergies for a battery venture worth 7.3 billion euros.

On the other hand, VW is establishing its own battery plants without any partners.

VW’s PowerCo will manufacture standardized cells that can be used across most of the group’s EV platforms, which could potentially offer an advantage if successful but carries inherent risks.

Thomas Schmall, VW’s technology chief and chairman of PowerCo, admits that this endeavour is causing some concerns within the company.

However, he remains confident that VW’s battery business will meet their internal demand as well as have opportunities to sell to external parties.

#technology #investment #electricvehicles #automotiverecruitment

Source: https://europe.autonews.com/automakers/vws-battery-efforts-are-challenge-worries-execs