Volkswagen Invests A Further 500 Euros Million In Sustainable Battery Activities With Northvolt AB

Volkswagen is contributing 500 million Euros in a financing round of its Swedish battery partner Northvolt AB. The Group will thus maintain its stake in the company constant at about 20 per cent. The funds are to be used for capacity expansion in the fields of production, recycling and research and development. Among other activities, Northvolt intends to expand the capacity of its Northvolt Ett gigafactory in Skelleftea, Northern Sweden from 40 GWh to 60 GWh per year, in order to meet higher demand from customers.

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The second Volkswagen gigafactory is located in Salzgitter

Volkswagen had already invested about €900 million in Northvolt in June 2019, acquiring about 20 percent of the shares in the company as well as a seat on the Board of Directors. The production of Volkswagen premium cells is to be concentrated at Skelleftea in cooperation with Northvolt. Production of these cells is due to start in 2023 and the annual capacity intended for Volkswagen is to be built up step-by-step to as much as 40 GWh.

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Volkswagen expects to commission six cell factories in Europe by 2030

The second Volkswagen gigafactory is located in Salzgitter and will produce the standard cell for the volume segment from 2025. It is also expected to reach an annual production volume of up to 40 GWh. Both gigafactories are to be operated using electric power from renewable energy sources.

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All in all, Volkswagen expects to commission six cell factories in Europe by 2030 together with its partners with a view to safeguarding the ramp-up of electric vehicle production. After Skelleftes and Salzgitter, possible locations and partners for the next cell factories are already being considered.