Volkswagen is working on a sustainable European battery supply chain
The two automotive giants want to develop the battery supply chain in Europe
Volkswagen and Bosch have signed a memorandum of understanding to explore a joint venture dedicated to providing the European market with battery equipment solutions. The two together plan to sell integrated battery solutions with on-site ramp-up and maintenance support for battery cell and system manufacturers. This joint venture was also designed with the aim of allowing Volkswagen to achieve its goal of building six battery cell factories by 2030 which will also be available for third-party customers.
The idea for Bosch and Volkswagen is to be autonomous for electric cars in terms of supply chain. Volkswagen relies on its JV with NorthVolt with which it has planned its first factory in Salzgitter in Germany.
“Europe has a unique chance to become a global battery powerhouse in the years to come,” Thomas Schmall, VW board member responsible for the automaker’s battery projects, said in a statement.
“There is a strong and growing demand for all aspects of battery production, including equipping new gigafactories. Volkswagen and Bosch will explore opportunities to develop and shape this new multi-billion euro industry by Europe,” he added.
“Our decision to actively engage in the vertical integration of the battery manufacturing value chain will unlock significant new revenue streams. Establishing a fully localized European supply chain for manufactured e-mobility in Europe certainly marks a rare opportunity in business history,” explained Schmall.
The European Battery Alliance has already said that a third of the world’s batteries must be made in Europe by the end of the decade to reduce dependence on South Korean and Chinese suppliers.