Volkswagen invests €500 million in battery manufacturing company

Volkswagen has recently invested about €500 million ($620 million) in its Swedish battery partner Northvolt AB with an aim to expand capacity in the fields of research and development, production, and recycling. The automaker which is racing towards electrification had previously invested €900 million in Northvolt in June 2019 and also acquired about 20% of shares in the company with a seat on the board of directors.

Volkswagen said that the investment will strengthen its partnership with Northvolt AB. (File photo) (REUTERS)
Volkswagen said that the investment will strengthen its partnership with Northvolt AB. (File photo)

Also Read : Volkswagen's electric cars to help this Greece island to go green

Volkswagen Group Components CEO Thomas Schmall said that batteries are one of the key components when it comes to attaining success in the world of electrification of vehicles. “Batteries are one of the key success factors in our unprecedented electric offensive. In the major area of green battery cells, we are assuming a pioneering role in Germany and Europe together," he said. Schmall also said that this investment will help to strengthen the strategic partnership of the two companies.

The production of Volkswagen premium cells will be concentrated at Skellefteå with Northvolt. The production of these cells is due to start in 2023. Volkswagen aims to steadily build up its annual capacity to 40 GWh. The second gigafactory of the automaker which is located in Salzgitter will produce the standard cells for the volume segment from 2025. It is also expected to reach an annual production volume of up to 40 GWh. The company said that both the gigafactories will operate on electric power from renewable energy sources.

Also Read : Volkswagen aims to achieve climate-neutral mobility by 2050, reveals roadmap

Volkswagen has set a target to commission six battery cell factories in Europe by 2030 in collaboration with its partners to secure the company's plans of electric vehicle production. The automaker is already looking for partners for the next cell factories and also the possible location for those manufacturing plants.

First Published Date: 12 Jun 2021, 10:00 AM IST
Shopping Bag Shop Now
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.