Volkswagen is getting into EV cell production with a 1 billion Euro investment

With a massive number of battery-electric vehicles on its horizon, VW is getting serious about cell production by going the DIY route.

Kyle Hyatt Former news and features editor
Kyle Hyatt (he/him/his) hails originally from the Pacific Northwest, but has long called Los Angeles home. He's had a lifelong obsession with cars and motorcycles (both old and new).
Kyle Hyatt
2 min read
Enlarge Image

With 20 or so more EVs planned for production in the next six years, Volkswagen is going to need a lot of battery cells.


Volkswagen has made no secret about its plans for electrification in the near future. With 20 battery-electric models slated to come to market in the next six years, VW is going to need a lot of battery cells, and to get them; it's decided to make its own.

Volkswagen will invest nearly 1 billion Euros in a battery cell production facility in the Lower Saxony region of Germany, the company said Monday in a press release. This news comes pretty soon after the announcement that it would be retooling its factory in Zwickau (also in Saxony) to be an EV only plant.

"Today's decision by the Supervisory Board marks a breakthrough for battery cell production in Lower Saxony," Stephan Weil, minister president for Lower Saxony, said in a statement. "The production of battery cells is crucial for the No. 1 automotive stronghold. These are positive signals for the Salzgitter location. I am very optimistic that battery cells can be produced in Germany at competitive conditions."

Volkswagen's release says it'ill have a partner in this battery cell production facility, but it declined to identify that partner. If we were the betting type, we'd guess that it's Varta -- a German battery company in which the government there has recently invested money to kickstart EV cell production.

"As part of our comprehensive electrification offensive we plan to secure our battery capacities through strategic partnerships," Supervisory Board Chairman Hans Dieter Pötsch said in a statement. "At the same time, we wish to expand our production capacities in Europe to support our growth plans. Given the ever greater complexity of our industry and the related challenges, it is essential to focus on our core business."

VW e-Golf wraps new electric drive in hatchback goodness

See all photos