Volkswagen Group will establish a power battery company in Europe with a business covering the entire industry chain

The Volkswagen Group announced that it will integrate its battery-related business and establish a new company in Europe that will cover the entire industry chain, from raw material processing to the development of a unified Standard Volkswagen brand power battery to managing a gigafactory in Europe.

"The Group is building an efficient and long-term reliable architecture for the fast-growing battery business," said volkswagen. As part of its new automotive strategy, the Volkswagen Group aims to become the world's leading manufacturer of electric vehicles. To this end, the Group is expanding its battery-related business as one of its core competencies. ”

In addition, volkswagen group also announced two new management appointments, and Soonho Ahn, who recently left Apple, will take on a leadership role in battery development. Volkswagen Group officials said: "Under the leadership of Battery Business Director Frank Blome, Soonho Ahn will lead the development of Volkswagen Group batteries."

Kai Alexander Müller, who previously worked as an analyst at Barclays Investment Bank in the United Kingdom, will also take up a position at Volkswagen Group in Salzgitter, Germany, where he said: "He will contribute his experience in financial capital markets and equity research there." ”

The Volkswagen Group plans to have 6 Gigabit battery plants in Europe by 2030 with a total annual production capacity of 240 GWh, with an average annual production capacity of 40 GWh per gigafactory.

The group's current focus is on the construction of the plant in Salzgitter, which will not only cost around 2 billion euros, but is also the first to produce a new unified standard battery, and the Volkswagen Group has even said it will use Saltgit as its battery production center in Europe. The plant is expected to start operations in 2025 with a total of 2,500 jobs.

Globally, the Volkswagen Group plans to invest around 52 billion euros over the next five years in the development and production of new electric vehicles.