Volkswagen is on its way to dominating the electric future of auto industry. The world’s largest carmaker has announced this Friday that they have made a deal with Northvolt of Sweden to set up a battery industry in Germany. The production dates of two of its newest models which served as a key to group’s success has also been confirmed.
The firm had said that the lithium-ion batteries’ production will start by late 2023 or by early 2024. They are planning to launch nearly 70 electric models within the next ten years and also expressed their hopes to bring about 22 million of electric cars during this period. $33 billion has been invested for electrifying their fleet within the coming 4 years. If this turns out to be a success, Volkswagen will be able to overtake their rivals like Tesla and BYD.
Lithium-ion batteries are an important part of the electrification strategy of Volkswagen and most of them are currently produced in China. As per Wood Mackenzie, a consulting firm nearly one third cost of electric cars is accounted by batteries. China is ranked one in the manufacturing of lithium cells in the world accounting for 70% of the total capacity followed by US with 12% in the second place. The deal between Volkswagen and Northvolt is seen as a crucial investment in the future of European battery manufacturing. Nearly $993 million is being invested by Volkswagen in this venture.
It has been confirmed by the company that the ID.3 electric car production would start by this November. A limited edition of ID.3 has already been sold out and it will be making its debut at the Frankfort Motor show on September 9. The electric version of Volkswagen Beetle will also be premiered at this show. Apart from investment in battery production, the company is also investing €1.2 billion for overhauling Zwickau plant. It is expected that the plant will be able to make 330,000 vehicles in a year by 2021.