Volkswagen will build a factory in Salzgitter, Germany, to produce lithium-ion battery cells as part of its joint venture with Northvolt.
The German car giant will invest €450m (US$489m) in building the joint venture’s Northvolt Zwei factory to produce lithium-ion battery cells.
The joint venture will rent the factory space, with production at the plant scheduled to start in early 2024 with an initial capacity of 16GW/h.
Dr Stefan Sommer, Volkswagen Group board member for components and procurements, who is also a member of the Northvolt board of directors, said, “We are optimizing the Volkswagen Group’s strategic position in the key future field of batteries. In addition to a very secure supply base with external producers, we are also systematically building up further capacities.”
Thomas Schmall, CEO of Volkswagen Group components, said, “We are pooling expertise at the Salzgitter site with production capabilities and the Center of Excellence for Battery Cells, and are therefore driving battery cell development further forward, developing new standards and transferring them direct to the manufacturing process.”