Volkswagen (OTCMKTS: VWAPY) is set to invest USD20.38 Billion in order to build electric vehicle batteries, simultaneously creating 20,000 jobs and producing billions in annual sales. Volkswagen is creating a new company called Power Co to manage the efforts as the automaker strives to provide the necessary capacity, materials, and supplies to fuel its EV goals.
Each plant is expected to have an annual production capacity of 40 GWh, enough to power 500,000 electric vehicles.
“In building our first in-house cell factory, we are consistently implementing our technology roadmap,” said Thomas Schmall, VW board member in charge of technology. “PowerCo will become a global battery player. The company’s major strength will be vertical integration from raw materials and the cell right through to recycling. In future, we will handle all the relevant activities in-house and will gain a strategic competitive advantage in the race to take the lead in e-mobility.”
The automaker disclosed plans last year to build six battery cell production plants in Europe by 2030, including a facility in Salzgitter and one in Skelleftea, Sweden. Meanwhile, the next plant is to be established in Valencia, Spain as well as a fourth factory in Eastern Europe. Moreover, the company is looking into building gigafactories in North America.