In a joint venture between Volkswagen Group and the Swedish battery producer Northvolt AB, it has been decided that Volkswagen will erect the buildings and infrastructure for “Northvolt Zwei” factory that is to produce lithium-ion battery cells, This will leverage synergies at the Salzgitter site – based on the existing Center of Excellence for Battery Cells.
The Volkswagen Group is amassing technological expertise in the field of battery cell production as part of its electrification strategy.
The Group is maintaining strategic relations with several producers to secure its battery supplies in all world regions. Currently, these suppliers are LG Chem, Samsung, and SKI for Europe as well as CATL for China and Europe.
Also, SKI will also supply battery cells for the US market. In Europe alone, Volkswagen expects annual demand of over 150 gigawatt-hours from 2025, with demand in Asia at a similar level.
“We are optimizing the Volkswagen Group’s strategic position in the key future field of batteries”, said Stefan Sommer, Volkswagen Group Board Member for Components and Procurement and a member of the Northvolt AB Board of Directors. “In addition to a very secure supply base with external producers, we are also systematically building up further capacities.”
In September 2019, Volkswagen and Northvolt established a joint venture to prepare for the large-scale production of lithium-ion batteries in Germany.
Volkswagen Group is developing the I.D. family based on the new Modular electric drive matrix (MEB). These are Volkswagens in a variety of classes that have been designed as fully electric vehicles and reach ranges of up to 500 km and more.