As part of the electrification strategy, the Volkswagen Group has announced a joint venture with Northvolt AB, a European supplier of sustainable, high-quality battery cells and systems.
The 50/50 joint venture will build a factory for lithium-ion batteries. Construction of the production facility is scheduled to start in Salzgitter (Lower Saxony) in 2020. Start of production is planned for the end of 2023/beginning of 2024. The initial annual output is to be 16 GWh.
The finalization of the joint venture is the result of an agreement which both parties concluded in June. Part of the approximately 900 million euros invested by Volkswagen is now flowing into the joint venture. Another part goes directly to Northvolt. In return, Volkswagen has received about 20 percent of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.
The Group alone has an annual demand of more than 150 gigawatt hours from 2025 in Europe – and also in Asia at the same level. Therefore is taking these steps to meet this rising demand.
The Volkswagen Group has signed off a comprehensive decarbonization program aimed at achieving a CO2-neutral balance in all areas from fleet to production to administration by 2050, and is fully committed to the Paris climate targets.
The group is planning to launch almost 70 new electric models in the next ten years. As a result, the projected number of vehicles to be built on the Group’s electric platforms in the next decade will increase to 22 million. It will be investing more than €30 billion into the electrification of the fleet by 2023.
Source: Press Release