Volkswagen Plans To Overtake Tesla In The European Market Setting Up Multiple Gigafactories
German automaker giant Volkswagen plans to take over the battery cell supply market in Europe by building half a dozen battery cell plants. The company has also decided to rule the electric vehicle market by growing its infrastructure for charging electric vehicles in the region in order to overtake Tesla.
The company is now at number 2 in the world of electric vehicles after Tesla. It has a major shift from regular cars to battery-powered cars. In a statement issued by the company on Monday, they said that they will be opening six battery cell plants in Europe by the end of 2030. They plan to do it with or without a partner.
Herbert Diess, the chief executive of Volkswagen said on Volkswagen’s Power Day that the company will be transforming its technology fast and it is going to be ‘unprecedented’. The Power Day also featured CEOs of Enel, BP, and Iberdrola. The event tried to compete with Tesla’s Battery Day that was held last September.
He also said that e-mobility has become a core business to them.
Volkswagen’s shares have risen to 3.8%. the company has not revealed how much their latest plan will cost. In December the company announced that it will be spending nearly 35 billion euros on e-mobility by the end of 2025.
Volkswagen was accused of using specific software to cheat the carbon emission test in the US. The claim was proved and the company was fined $2.8 billion in the country. The group also had to be put under the new Chinese quotas for electronic cars.
According to the statements made by the company, the Joint production capacity of the European factories will be up to 240-gigawatt hours (GWh) a year. The first 40 GWh will be produced at Northvolt, Sweden. The production will start in 2023.
The deal says that Volkswagen will increase its 20% share at Northvolt. The company will occupy over the Swedish firm’s stake. The company has planned a battery cell venture in Salzgitter, Germany. The second factory will start there, from 2025.
After that, they will be building a factory in Spain, then Portugal, or France in the year 2026. They will also open a site in Slovakia, Poland, or the Czech Republic by the end of 2027. They plan to set up two more by the end of 2030.
Board member Thomas Schmall revealed that the planning of building the first two factories has acquired a place in the financial planning of the company. But the company is still discussing the following factories in their financial planning.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.
