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Volkswagen ramps up electric car battery offensive

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 16 Mar 2021
Thomas Schmall, CEO of Volkswagen Group Components.
Thomas Schmall, CEO of Volkswagen Group Components.

The Volkswagen Group says it plans to ramp up its electric vehicle (EV) battery production and charging infrastructure, as part of its e-mobility roadmap for 2030.

During the “Power Day” virtual event held yesterday by the German automaker, Thomas Schmall, CEO of Volkswagen Group Components, explained the company’s roadmap aims to significantly reduce the complexity and cost of batteries, in order to make the EV attractive and viable for as many people as possible across the globe.

At the same time, the group says it aims to secure the supply of battery cells beyond 2025.

In Europe alone, six giga-factories with a total production capacity of 240GWh are to be established by the end of the decade. Volkswagen says it is also vigorously pursuing expansion of the public fast-charging network globally.

As part of its execution plans, co-operations have been established in Europe with energy companies BP (Great Britain), Iberdrola (Spain) and Enel (Italy), to produce batteries, which will be made available globally.

“E-mobility has become a core business for us. We are now systematically integrating additional stages in the value chain. We will secure a long-term pole position in the race for the best battery and customer experience in the age of zero-emission mobility,” says Herbert Diess, chairman of the board of management of the Volkswagen Group.

Vehicle manufacturers across the globe have set ambitious targets to reduce carbon emissions as part of their e-mobility strategies, as the race to electric vehicles heats up.

Volkswagen Group is currently preparing for the South African launch of its EV range. Last year, it introduced its electric mobility pilot project in SA, which saw six fully-electric e-Golfs being tested in an effort to gain valuable consumer insights into the varying experiences of driving and living with an EV in SA.

The e-Golf pilot project includes charging infrastructure installed in Volkswagen's Uitenhage manufacturing plant, as well as the Dealer Training Academy in Centurion, Gauteng.

The organisation, which develops EV components through its Germany-based Volkswagen Group Components unit, says it is pushing ahead at full speed with the development of production capacities in order to meet the increasing demand for battery cells which will be used across EV brands and in up to 80% of all of its EVs by 2030.

The giga-factories currently operated by Volkswagen in Salzgitter, Germany, will produce the unified cell for the high-volume segment from 2025 and develop innovations in process, design and chemistry.

“Together with partners, we want to have a total of six cell factories up and running in Europe by 2030, thus guaranteeing security of supply,” explains Schmall.

“The new factories are expected to produce cells with a total energy value of 240GWh per year by the time they are finally completed. Volkswagen is, therefore, actively contributing to meet the targets of the European Union’s Green Deal.”

Volkswagen says it aims to gradually reduce battery costs in the entry-level segment by up to 50% and in the volume segment by up to 30% − by optimising the cell type, deploying innovative production methods as well as consistent recycling.

“We aim to reduce the cost and complexity of the battery and at the same time increase its range and performance,” adds Schmall.

“This will finally make e-mobility affordable and the dominant drive technology.”

Volkswagen’s battery offensive is being accompanied by a large-scale expansion of the fast-charging network.

Along with its partners, the company says it intends to operate about 18 000 public fast-charging points in Europe by 2025. This represents a five-fold expansion of the fast-charging network compared to today, and corresponds to about one-third of the total demand predicted on the continent for 2025.

Volkswagen also has plans to roll out charging infrastructure in the US, China and other parts of the globe.

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