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Explore the latest trends and actionable insights on the Automotive Battery market to inform business strategy and pinpoint opportunities and risks

Volkswagen Plans $20 Billion Investment in EV Battery Production

Industry: Vehicle Manufacturing
Current: Product Indicators

Volkswagen intends to invest more than $20 billion in the automotive battery market
According to a report from Volkswagen, the company dominated the European market for electric vehicles with a share of around 25%
Increase in oil prices and a lack of gasoline in the early 1970s forced Volkswagen to explore alternative powertrains

Overview of Volkswagen Electric Vehicle

Volkswagen started looking at alternative powertrains in the early 1970s as a result of the increasing prices of oil and a lack of gasoline. The Elektro Bus, Volkswagen’s first all-electric concept vehicle, was developed by an 11-person team at the Centre for Future Research in Wolfsburg, Germany.

According to Volkswagen, switching to electric vehicles (EVs) is no longer a sacrifice but an exciting time for mobility, from the styling of the vehicles to the access to charging opportunities. The success of Volkswagen group with its 120 locations globally is intertwined with globalization.

The company’s report for 2021 shows that it dominated the European market for EVs with a share of 25% and was in second place in the US with 7.5%.

Overview of Volkswagen’s Plans

Volkswagen often stated that producing enough batteries to power all automobiles is the biggest problem of the transition to EVs and revealed a plan to develop plants with a combined capacity of 240GWh by 2030.

Volkswagen and its partners plan to invest more than $20 billion in the car battery industry to beat its US rival, Tesla, which dominates the market. The PowerCo division will handle Volkswagen’s global battery-related projects, including energy storage systems, from the extraction of raw materials to recycling.

Global EV Industry

The global market for EVs is growing rapidly. The COVID-19 pandemic affected the automobile sector, including the EV industry. During the pandemic, the cost of raw materials for EVs more than doubled. The increase in the prices of raw materials for EVs could increase the price of EVs in the future. As per Globaldata, the expected electric vehicles market size would be $470.4 billion in 2022.

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