Volkswagen announces battery cell production plans in Germany

By Akshay Kedari  | Date: 2019-05-16

Volkswagen announces battery cell production plans in Germany

Volkswagen, the German multinational automotive manufacturing company announced that it will invest over 1 billion euros in battery cell manufacturing at a facility in west Germany and is looking to simplify the group by spinning out or selling units.

Sources cite that the company said in a statement that it plans to set up the battery facility in Lower Saxony under partnership, only after a supervisory board meeting. It also plans to start discussing about setting up a multi-brand plant in Europe.

In the automotive industry, battery cells have become a key field of contention as the industry shifts to electric mobility. Presently, the automotive industry mainly sources its requirements from Asian manufacturers.

Reportedly, Volkswagen stated that it has been looking for options for its large-bore diesel engines and marine turbomachinery manufacturer, MAN Energy Solutions as well as transmissions maker, Renk that include partnerships, joint ventures and full or partial sale.

Source familiar with the knowledge of the matter, reported earlier that Volkswagen has been approaching several companies to estimate their interest in buying MAN Energy Solutions and in case of a potential sale the profit is expected to be about 3 billion euros.

As per credible sources, Volkswagen Chief Executive Officer Herbert Diess is determined to slim down and simplify Volkswagen group that owns 12 brands, buses, cars, trucks, electric bicycle and motorbikes as a part of its business. Last year, Diess has been reported saying that the company was considering to build its own solid-state battery cells with a possible production commencing on 2024 or 2025.

Hans Dieter Poetsch was reportedly quoted stating that given the ever-evolving complexities of the industry and the related challenges, it is important to focus on core businesses.

Volkswagen also plans to resume its preparation for an initial public offering of Traton, the truck unit of the company, which has been put on hold in March, due to volatile conditions of the market.

Source credit: https://in.reuters.com/article/volkswagen-electric/volkswagen-to-make-batteries-in-germany-slim-down-idINKCN1SK0CQ

https://www.reuters.com/article/volkswagen-electric/volkswagen-set-to-announce-battery-production-plans-sources-idUSFWN22P0Y5

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

McDonald’s to leave Russia after 30 years amidst Ukraine’s invasion

By Akshay Kedari

After Ukraine’s invasion, multinational fast-food giant McDonald's Corp. is reportedly planning to sell all its restaurants in Russia, pulling operations from the nation after 30 years. The world's biggest fast-food chain closed 847 ...

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

Berlin’s GetHenry bags USD 17.4 Mn seed funding for business expansion

By Akshay Kedari

GetHenry, a Berlin-based company that offers couriers and logistics organizations electric last-mile delivery bikes, has reportedly raised USD 17.4 million seed round to grow its operations across Europe. The latest investment round was led by LocalG...

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

Ferrari to equip the upcoming Purosangue with its trademark V12 engine

By Akshay Kedari

Italian luxury sports car manufacturer Ferrari S.p.A. will equip its much-awaited Purosangue SUV with a 12-cylinder engine, as it focused more on fuel-efficient models. Confirming the news, Ferrari Chief Executive Benedetto Vigna claimed that the com...

White House to spend USD 3 billion on EV battery manufacturing in U.S.

White House to spend USD 3 billion on EV battery manufacturing in U.S.

By Akshay Kedari

According to reliable sources, the Biden administration is planning to provide USD 3 billion in finance to reinforce EV battery manufacturing capabilities in the United States. The apparent funds will be issued by the Department of Energy from Presid...

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

Telefonica eyeing Israel’s high-tech sector to improve its portfolio

By Akshay Kedari

Telefonica S.A. is planning to increase its investments in Israel’s high-tech sector this year, a senior official reported recently. The company, which is Europe’s third-largest telecommunications company, is also eyeing the country&rsquo...