VW announces plan to reduce battery costs by up to 50% and secure 240 GWh of capacity

The VW ID Buzz and ID Crozz
Volkswagen held its “Power Day” where it announced a plan to reduce battery costs by up to 50% and secure 240 GWh of battery capacity.

Last week, we reported VW was planning a “Power day,” which sounded a lot like Tesla’s “Battery Day.”

The presentation was today, and as expected, the company announced its plan to secure battery cell supply to enable its electrification plans.

The similarities with Tesla’s Battery Day didn’t stop at the name.

Like Tesla, VW announced plans to reduce battery costs by up to 50%.

Thomas Schmall, Volkswagen group board member for technology, commented on the plan:



We aim to reduce the cost and complexity of the battery and at the same time increase its range and performance. This will finally make e-mobility affordable and the dominant drive technology. Aside from the planned in-house production, significant cost benefits are expected primarily thanks to the new unified cell. It is set to be launched as of 2023 and will be installed across brands in up to 80% of all electric vehicles in the Group in 2030. Further savings will be delivered by optimizing the cell type, deploying innovative production methods as well as consistent recycling. Volkswagen is thus aiming to gradually reduce battery costs in the entry-level segment by up to 50% and in the volume segment by up to 30%. “We will use our economies of scale to the benefit of our customers when it comes to the battery too. On average, we will drive down the cost of battery systems to significantly below €100 per kilowatt hour. This will finally make e-mobility affordable and the dominant drive technology.

Concretely, the plan will result in six new battery gigafactories in Europe alone with a total production capacity of 240 GWh are to be established by the end of the decade.

We reported on a deal with Northvolt earlier today for VW to take over one of their planned factories.

VW is betting on a mix of in-house production and suppliers to achieve its battery supply goal.

Herbert Diess, chairman of the Volkswagen Group, commented on the announcement:



E-mobility has become core business for us. We are now systematically integrating additional stages in the value chain. We secure a long-term pole position in the race for the best battery and best customer experience in the age of zero emission mobility.

Along with the plan to secure battery supply, Volkswagen also announced new partnerships to accelerate deployment of charging infrastructure for electric vehicles. VW has now new deals with BP (Great Britain), Iberdrola (Spain), and Enel (Italy).

The German automaker intends to operate 18,000 public fast-charging points in Europe by 2025.

In North America, the group is continuing its effort through Electrify America and Electrify Canada, who are planning around 3,500 fast-charging points by the end of the year.

In China, VW is planning a total of 17,000 fast-charging points by 2025 through the CAMS joint venture.

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