Volkswagen and EU Electric Car Battery Plans

Volkswagen sources EV batteries from LG Chem, Samsung SDI, SK Innovation and CATL. VW expects annual demand in Europe to be more than 150 GWh from 2025 and to be at a similar level in Asia.

Volkswagen announced its plan to build six battery factories in Europe, each with a capacity of 40 gigawatt-hours. VW’s first 40 GWH battery plant will be operational by 2023.

VW is developing a way to recycle nearly all (95%) of its battery components and to cut the price of electric vehicles by 30 to 50 percent.

VW is building another 3500 Electrify America fast chargers in North America in 2021 along with increasing the number of charging stations from 560 to 800. In Europe, VW said, it is going to increase the number of chargers in operates by five times, to 18,000 total chargers. It also plans a major expansion in China.

VW has a goal of producing one million electric vehicles a year by 2023 and 1.5 million a year by 2025.

Volkswagen is developing a new battery cell it calls a unified cell. This battery will reduce costs for entry-level electric vehicles by 50 percent and for its mainstream vehicles up to 30 percent. Thomas Schmall, CEO of Volkswagen Group Components, said the cost of the batteries will be brought down below about $119 per kilowatt-hour.

A Bloomberg Survey from Dec, 2020 indicated that Tesla already pays $115 per kilowatt hour for its batteries.

Tesla at its 2020 Battery Day talked about halving the cost of batteries. VW appears to be trying to catch up to where Tesla is in 2020-22 in 2023-2025.

Tesla has had the 35 GWH Nevada battery factory for several years and is making 10 GWH/yr pilot plant in Fremont and making 100-200 GWh/year battery factories in Berlin and Texas.

Tesla announced plans to scale to 3000+ GWH/year in battery production by 2030 while VW is targeting 240 GWh/year by 2030.

The European Union aims to produce battery cells for at least 7 million electric cars a year by 2025. Peter Altmaier, Bruno Le Maire (French and German Economic Ministers) and European Commission Vice President Maros Sefcovic announced the EV battery plans in a newspaper article.

SOURCES- Bloomberg, Yahoo Finance, Volkswagen, Car and Driver
Written by Brian Wang, (Brian owns share of Tesla).

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