By Victoria Waldersee
- JV to be set up by the end of this year
- To deliver battery production systems, assist manufacturers
- Will serve Volkswagen and other factories across Europe
BERLIN, Jan 18 (Reuters) – Volkswagen (VOWG_p.DE) and Bosch have agreed to set up a joint venture by the end of this year to equip battery cell factories and help make Europe self-sufficient in battery production.
The venture will deliver battery production systems and assist battery cell manufacturers in scaling up and maintaining production sites, Volkswagen said on Tuesday, adding it would serve its own factories and others across Europe.
Europe has a one-time chance to become the global powerhouse for batteries in coming years,” Volkswagen board member Thomas Schmall, who is responsible for VW’s battery plans, said.
“We are working to build a complete, localised, European supply chain for ‘made in Europe’ e-mobility.”
The companies did not say how much they would invest in the venture.
So far, battery cell plants capable of generating just under 900 gigawatt hours (GWh) of capacity have been announced in Europe, according to data from the European Battery Alliance (EBA) – set to make up about 16% of global production by 2029.
But the EBA has said a third of global batteries should be produced in Europe by 2030 to cut dependence on suppliers that dominate the market, mostly from South Korea and China.
The largest planned battery plant in Europe is Tesla’s (TSLA.O), located in Berlin next to its electric vehicle factory and set to produce over 100 GWh of capacity at its peak.
Both the plant and the factory are still awaiting approval from regional authorities to begin production.
