Volkswagen ID4

Volkswagen says EVs have become core business, as it aims to halve battery costs

Volkswagen says it is aiming to reduce the cost and complexity of batteries and at the same time increase range and performance, making e-mobility affordable and the dominant drive technology – and driving down the cost of battery systems to significantly below €100 per kilowatt hour.

Volkswagen has laid out its batteries and charging roadmap to 2030 which will see six gigafactories with a total production capacity of 240GWh, resulting in a reduction of up to 50 percent in battery costs.

The European charging network will also be expanded five-fold with partners, creating 18,000 fast-charging points.

The Volkswagen Group presented its technology roadmap for batteries and charging up to 2030 today on its first Power Day. The goal of the roadmap is to significantly reduce the complexity and cost of the battery in order to make the electric car attractive and viable for as many people as possible.

At the same time, the Group is aiming to secure the supply of battery cells beyond 2025. In Europe alone, six gigafactories with a total production capacity of 240 GWh are to be established by the end of the decade. 

Volkswagen is also vigorously pursuing expansion of the public fast-charging network globally. With this in mind, cooperations have been agreed in Europe with the energy companies BP (Great Britain), Iberdrola (Spain) and Enel (Italy).

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

The Group is pushing ahead at full speed with the development of production capacities in Europe in order to meet the increasing demand for battery cells. “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 Thomas Schmall, Volkswagen Group Board Member for Technology.

The new factories are expected to produce cells with a total energy value of 240 GWh per year by the time they are finally completed.

Aside from the planned in-house production, significant cost benefits are expected primarily thanks to the new unified cell. It is set to be launched as of 2023 and will be installed across brands in up to 80 percent of all electric vehicles in the Group in 2030.

Volkswagen is aiming to gradually reduce battery costs in the entry-level segment by up to 50 percent and in the volume segment by up to 30 percent.

“We will drive down the cost of battery systems to significantly below €100 per kilowatt hour. This will finally make e-mobility affordable and the dominant drive technology”, says Thomas Schmall.

Volkswagen’s battery offensive is being accompanied by a large-scale expansion of the fast-charging network. Along with its partners, the company 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.

This will be done through a series of strategic partnerships in addition to the joint venture IONITY. Volkswagen wants to establish about 8,000 fast-charging points throughout Europe together with BP. The fast-chargers with a charging capacity of 150 kW will be installed at a total of 4,000 BP and ARAL service stations, with the majority of these in Germany and Great Britain. In cooperation with Iberdrola, Volkswagen will cover main traffic routes in Spain. In Italy, Volkswagen wants to collaborate with Enel to establish the fast-charging network both along motorways and in urban areas. Volkswagen will invest about €400 million in the European programme as a whole by 2025, with further investments being borne by external partners.

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