The German carmaker said on Monday it plans to build six “giga factories” in Europe by 2030 with a total production capacity of 240 gigawatt-hours per year. According to a spokesperson, it is enough to power nearly 4 million Volkswagen ID.3 electric vehicles. The first two battery factories will operate in Skellefteå, Sweden and Salzgitter, Germany.
Volkswagen is also adding a large number of new charging points for electric vehicles to networks in Europe, the United States and China, the company announced at an event on Monday.
Volkswagen’s strategy for electric vehicles depends on reducing the cost of battery systems through a new unit battery, which will be introduced in 2023 and will install up to 80% of the group’s electric vehicles. The company also plans to recycle up to 95% of the raw materials involved in the production of batteries.
“The one size fits all cell phone design will drastically reduce battery costs … by up to 50% compared to today,” CEO Herbert Diess said at the event on Monday. “Lower prices for batteries mean cheaper cars, making electric vehicles more attractive to customers.”
Battery costs, which make up a large part of the total cost of an electric car, will be gradually reduced by up to 50% on entry-level models and by up to 30% in standard models, Volkswagen said in a statement.
The company also needs a safe supply of battery cells as it increases the production of electric vehicles. Volkswagen (VLKAF) start field winning Tesla (TSLA) in its bid to become the world’s largest producer of battery electric vehicles. The company sold 231,600 battery-powered electric vehicles in 2020 – less than half the number of sales Tesla made, but an increase of 214% over the previous year.
“E-mobility has become a core business for us,” Diess said. The company’s new strategy would ensure a long-term position in the battle for the best battery and the best customer experience in the era of free-release, ‘he added.
The company’s battery offensive is accompanied by a huge expansion of the fast charging network.
In partnership with BP (BP), Spain’s Iberdrola (IBDRY) and Italian energy company In the (EDCFF), Volkswagen plans to operate around 18,000 public charging points in Europe by 2025, compared to currently around 3,600. The carmaker estimates that its network at that time will cover about one-third of the expected total demand on the continent.
Volkswagen is also expanding charging points in the United States and China. Electrify America, a subsidiary, plans to have it by the end of the year, about 3,500 high-speed charging points in North America. In China, Volkswagen focuses on a a total of 17,000 fast charging points by 2025.
Tesla, by comparison, currently has 20,000 high-speed charging points worldwide.
From 2022, Volkswagen’s electric vehicles will also support technology with which they can be connected private, commercial and public energy systems. “Electric vehicles will become mobile power banks,” Diess said.
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