Volkswagen, Bosch partner for industrial production of EV battery cells

Volkswagen and Bosch signed an MoU to set up a project unit to explore the possibilities of industrial-scale solutions for battery manufacturing in Eu
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File photo used for representation. (Bloomberg)
File photo used for representation.

Volkswagen and Bosch have signed a memorandum of understanding (MoU) as the companies aim to industrialise the manufacturing process of battery cells. Through this, the companies are planning to set up a project unit to explore the possibilities of industrial-scale solutions for battery manufacturing in Europe.

Both plan to supply integrated battery production systems along with on-site ramp-up and maintenance support for battery cell and system manufacturers as well as the entire range of processes and components needed for the large-scale manufacture of battery cells and systems.

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The brands are aiming for the volume production of sustainable and latest technology batteries. By following the approach of local production, this move is also a step towards achieving carbon neutrality. Volkswagen also stated that this collaboration will also help the automaker to push its goals for electric mobility.

Thomas Schmall, Volkswagen Group Board Member for Technology, said there is a strong and growing demand for all aspects of battery production, including the equipment of new gigafactories. “Volkswagen and Bosch will explore opportunities to develop and shape this novel, multibillion-euro industry in Europe. Our decision to actively engage in the vertical integration of the battery-making value chain will tap considerable new profit pools. Setting out to establish a fully localized European supply chain for e-mobility made in Europe certainly marks a rare opportunity in business history," Schmall added.

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Rolf Najork, Member of the Board of Management, Robert Bosch GmbH stated the company knows how the battery technology works and how to manufacture it. “With more than 135 years of automotive experience and our proven industrialization expertise, we want to serve the growing demand for batteries. European industry has the potential to become a technology driver for the ecological transformation of the economy," he mentioned.

Volkswagen and Bosch are together aiming to prepare the establishment of the new company by the end of 2022.

First Published Date: 22 Jan 2022, 16:21 PM IST
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