Volkswagen Invests $20 Billion in Car Batteries

Volkswagen invests in a $20 billion car battery joint venture

Volkswagen plans to invest in a battery-cell business worth more than 20 billion euros ($20.38 billion), which will create 20,000 new jobs and generate annual sales of up to 20 billion euros by 2030, as it seeks to beat US rival Tesla, which controls the vehicle market. Electric boom. Read more [Software Errors in Tesla Cars, German Traffic Agency Stated].

The auto giant said that Volkswagen’s PowerCo unit will handle battery production and research, from mining to recycling, as well as energy storage projects.

The name of the factory, “SalzGiga”, is a response to the name of its rival Tesla’s “Gigafactory”, which recently opened near Berlin, and Volkswagen stated that its project aims to help it compete and eventually defeat Tesla. With the battery cell project, Volkswagen aims to build six plants in Europe, the SalzGiga plant is the blueprint for Volkswagen’s future modular production plants, and Volkswagen plans to establish two more plants in North America. Read more [Volkswagen CEO says he wants to get close to Tesla and then overtake it].

Volkswagen has stated that producing enough batteries to power all cars is the biggest challenge in the transition to electric cars, and the company has laid out a plan to build factories with a combined capacity of 240 gigawatt-hours by 2030.

Volkswagen has unveiled a previously announced standard battery cell in 2021, which will be used in more than 80% of the car models that will be produced by the group. Read more [Volkswagen Cancels Evening Shifts as Chip Crisis Continues] and [Volkswagen Car Production May Decline in 2022].

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