VW announces €20 billion investment in batteries by 2030, opens Europe's 1st new battery plant this week

Last December, VW announced it would build six battery superplants in Europe to meet the company's growing demand for battery packs. Now, reports say VW will open its first new battery plant this week.

According to CleanTechnica, VW is aggressively moving forward with electric vehicles. VW has pledged to invest 20 billion euros by 2030 to create a new company called PowerCo, which will be responsible for VW's global battery business. Specifically, PowerCo will manage the operations of Volkswagen Group's international battery plants, as well as develop battery technology, integrate vertical chains and manage battery recycling operations. According to Volkswagen Group CEO Herbert Diess, the creation of PowerCo is a new milestone that will establish our own battery plant. Thomas Schmall, Volkswagen's board member for technology, said PowerCo will be an international battery company whose main strength is its vertical integration and that it will be responsible for the entire business from raw materials to battery recycling. Volkswagen said that by 2030, PowerCo and its partners will invest more than 20 billion euros (about 136.2 billion yuan) and employ up to 20,000 people in Europe.

This week, ground will be broken on the first new VW battery plant in Salzgitter, Germany. PowerCo plans to locate the second battery plant in Valencia, Spain, while the locations of the remaining four European battery plants have not yet been announced. VW expects to cut the cost of batteries for its electric vehicles in half compared to today when it completes its six battery plants in Europe.