Volkswagen and Northvolt have agreed to build a factory for lithium-ion batteries as part of a new 50/50 split joint venture. Construction of the production facility is scheduled to start in Salzgitter, Germany, in 2020. Start of production is planned for the end of 2023.
Part of the €900m (US$993m) invested by Volkswagen is now flowing into the joint venture. Another part goes directly to Northvolt. In return, Volkswagen has received about 20% of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.
“With the founding of the joint venture and the planned construction of a battery cell factory in Salzgitter, we are making a decisive contribution to establishing the core battery cell technology in Germany as well.”
The Volkswagen Group is expected to have an annual demand of more than 150gWh from 2025 in Europe – and also in Asia at the same level. Volkswagen is, therefore, investing more than €30bn (US$33bn) into the electrification of the fleet by 2023.
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