VW to Launch Battery Cell Production in Germany

May 14, 2019 at 1:34 AM

Volkswagen AG says it will begin making battery cells in Salzgitter, Germany, on a pilot basis by the end of 2019.

The company’s supervisory board has approved nearly €1 billion in funding to build the factory. Details will be completed later this year.

As EV product builds, VW plans to shift to dramatically higher-volume battery output through so-called gigafactories. Such plants will be operated in partnership, perhaps with such companies as CATL, LG Chem and SKI, according to VW.

The carmaker says it will produce lithium-ion batteries initially but add next-generation solid-state batteries as enabling technologies evolve.

VW estimates it will need more than 300 gigawatt-hours of battery capacity per year in Europe and Asia alone a decade from now. By then, the company expects to have nearly 70 electric vehicles in its multi-brand model lineup.

For now, sales of electrified vehicles are modest, and VW is importing propulsion batteries for those vehicles from Asian suppliers.