The money is there, Volkswagen CEO says of planned battery cell push

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MUNICH, Sep 7 (Businesshala) – Volkswagen (VOWG_p.DE) is optimistic it has enough funding, internal or external, to meet its ambitious plan to build six large battery factories across Europe with partners by the end of the decade. Chief Executive said.

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“The necessary capital is available in the market. Northvolt has shown this,” said Herbert Diess on the sidelines of the IAA Munich car show.

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Swedish battery cell maker Northvolt, in which Volkswagen holds a 20% stake, raised $2.8 billion in June this year in one of the largest private placements in Europe, led by four Swedish pension funds and OMERS Capital Markets.

“Today, the returns that can be earned with battery production are higher. This is a demand-driven market and remains a demand-driven market for the foreseeable future,” Dias said.

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The construction of new battery cell plants, which typically cost around 2 billion euros ($2.4 billion), is a key requirement for Volkswagen’s vision of becoming the world leader in electric vehicles (EVs).

In March Volkswagen outlined its battery cell push, which it plans to pull through with partners, but has not yet specified how much it will cost and the carmaker plans to fund on its own. Is.

The six European factories will have a combined production capacity of up to 240 gigawatt hours (GWh) annually, with the first 40 GWh coming from Northvolt by 2023.

The second plant will be built by 2025 in the city of Salzgitter in partnership with China’s Goshan Hi-Tech (002074.SZ), in which Volkswagen holds a 26% stake, with potential locations for a third and fourth plant in Spain and Eastern Europe.

Two more plants are to be built in subsequent years but Volkswagen did not specify where in Europe they would be located.

Diess said in May that parts of Volkswagen’s battery activities may be listed separately in an initial public offering.

($1 = 0.8430 Euro)

Editing by Madeline Chambers, written by Christoph Steitz

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