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What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Text | Zinc

The current Volkswagen Group is aptly described as a carbon neutral leader.

How quickly carbon neutrality can be achieved, the world is looking at China. China's carbon neutrality target by 2060 far exceeds the global carbon neutrality requirement of around 2065-2070 under the 2°C temperature control target of the Paris Agreement.

This has made many car companies feel the pressure of the goal, but the Volkswagen Group has chosen to further increase the weight. They announced in 2019 that they would achieve the Group's carbon neutrality target by 2050.

As a major carbon reduction player, it is not easy for the automotive industry to achieve carbon neutrality.

For example, the process of building a car is comparable to a table full of people, its production chain is large and complex, and in this production chain, carbon emissions are everywhere. This is still before the car is delivered to you, and the use of the car will continue to create carbon emissions. Therefore, if you want to achieve carbon neutrality, you must achieve a green transition in all aspects of a vehicle from scratch to use. So, where is the technical difficulty of achieving carbon neutrality?

Next, I will use the "flashback" method, starting from the electric travel we are familiar with, gradually going deep into the automobile manufacturing link, until the green transformation of the auto parts supply chain, to see how Volkswagen China is practicing the goal of carbon neutrality.

Product side,

Accelerate the strategy of electric mobility

Accelerating the transformation of electrification is a general consensus in the industry. According to the national new energy vehicle industry development plan, the penetration rate of new energy vehicles in China (the proportion of new car sales to total sales) will reach at least 20% in 2025.

In response to this new energy industry development goal, on March 15, 2021, the Volkswagen Group presented a battery and charging technology route for the next 10 years at its first "Power Day" event, which aims to significantly reduce the complexity of the battery production process and significantly reduce costs.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Herbert Diess, Chairman of the Board of Management of the Volkswagen Group

In order to achieve this goal in the Accelerated Landing in the Chinese market. In July this year, volkswagen group reached an agreement with Guoxuan Hi-Tech to develop the first generation of standard batteries for the group's conventional mass production models. Then, in September, they set up a battery system plant in Anhui, which is the first battery system factory in China, with an initial annual production capacity of 150,000-180,000 high-voltage battery systems, all of which will be used for pure electric vehicles produced at Volkswagen's Anhui MEB plant.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

As sales of ID.4, ID.6 and ID.3 products increase month by month, the battery system factory in Hefei, Anhui Province, will play a very critical supporting role

In order to further enhance the service experience and eliminate everyone's anxiety about the range of electric vehicles. Volkswagen Group has continuously expanded its charging network through its joint venture in China, Kaimeisi New Energy Technology Co., Ltd., to create a worry-free charging experience. According to the plan, in 2021, more than 6,000 charging terminals have been built in China, covering 77 cities. This data will continue to increase, reaching 17,000 charging terminals by 2025.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Kämeiss can provide users with customized charging products and one-stop solutions, with an output power of 360 kW in the public charging field fast charging station, the fastest charge can be achieved for 15 minutes, and the vehicle has an endurance of 400 km

Looking back at the relevant work of Volkswagen Group in China in 2021 to promote the electrification strategy, both at the strategic level, as well as at the product or execution level, it is accelerating. This is a very positive signal that they, as a huge automobile group, have now come up with specific implementation plans for the goal of electric mobility.

On the production side, the energy is converted to green electricity

The rational use of green electricity at the production end is one of the important means to reduce carbon emissions. Several of Volkswagen's production sites in China have adopted renewable electricity and achieved energy efficiency improvements, while actively promoting effective measures throughout the supply chain to reduce carbon emissions and achieve sustainable development.

Taking a pure electric model ID.3 as an example, by converting the energy produced by factories and batteries to green electricity, the carbon emissions caused by the production process and supply chain links can be reduced from 14.4 tons to 13.1 tons.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

SAIC Volkswagen Anting MEB plant

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

FAW-Volkswagen Meb plant in Foshan

Since the beginning of this year, Volkswagen China has vigorously promoted decarbonization and expanded the use of renewable electricity at the production end. The Group's two MEB plants in Anting and Foshan have achieved 100% renewable electricity through distributed photovoltaics, direct purchase of electricity, renewable power certificates, etc., and reduced production energy consumption through a variety of energy-saving equipment. The latest Volkswagen Anhui MEB plant plans to use renewable electricity from the start of production, while taking a series of energy-saving measures to reduce overall carbon emissions.

As far as the conversion to renewable electricity is concerned, Volkswagen China is not the first, and the new generation of OEMs in the industry are actively exploring the mode of photovoltaic power generation, but in terms of execution and implementation speed, Volkswagen China ranks very high.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Ingle, Executive Vice President of Volkswagen Group China and Head of Components, Logistics and Quality Assurance

For example, they are one of the few companies in the industry that explicitly mentions the development goal of renewable electricity coverage. Mr. Ingle, Executive Vice President of Volkswagen Group China and Head of Parts, Logistics and Quality Assurance, mentioned: "In 2022, the installed capacity of photovoltaic power generation at the Plant in China will reach 200 MW, and its power generation is expected to account for about 10% of the total electricity consumption of all the Group's plants in China. ”

From the perspective of the full life cycle of a car, about half of the carbon emissions occur before the consumer gets it, so carbon emission control in the production and supply chain is extremely critical. Looking back over the past year, volkswagen group, as a veteran car company, has also worked hard in the production and supply chain links, and I think this is exactly the responsibility that a leading company should show.

Supply chain side, promote sustainable development

To evaluate the comprehensive capabilities of a car company, the control of suppliers is particularly critical. Many times, even if the parts produced by the same supplier, but the supply of the main engine factory is different, the actual parts and components product performance will be different, which is closely related to the value orientation, technical guidance and accurate management of the main engine factory.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Bei Mingjie, Executive Vice President of Volkswagen Group China and Head of Purchasing Department

As a leading enterprise in the industry, Volkswagen China has played an exemplary role in this regard. In the words of Mr. Pei Mingjie, Executive Vice President and Head of Purchasing Department of Volkswagen Group China, "Thanks to the Group's sustainable supply chain management initiatives, suppliers' awareness of the importance of sustainable development and carbon emission reduction has increased significantly. Several Tier 1 suppliers have set targets to halve production-related carbon emissions by 2030 and fully climate neutralize all emissions by 2040. ”

We know that one of the important sources of carbon emissions from electric vehicles is batteries, so the Group pays particular attention to the carbon emissions of batteries. Volkswagen Anhui has set higher targets in the battery supply chain, with the first new energy model being commissioned in the second half of 2023 and carrying 100% of its batteries, seven years ahead of the entire supply chain's goal of using renewable electricity entirely by 2030.

What is the technical difficulty in achieving carbon neutrality? It must be a green transformation of the product life cycle

Id. Family of Battery Systems

Volkswagen China's strict indicators are not a head start, thanks to years of supplier management experience, through a variety of ways to strengthen the management of the sustainable development of the procurement system. In 2021, the Group accelerated its sustainability performance rating by providing mandatory ratings to suppliers' sustainability management systems and practices from multiple dimensions such as working environment, occupational health and safety.

By the end of 2021, the sustainability performance rating has covered 1,050 Chinese suppliers, and all electric vehicle production suppliers have been included in the rating system. From the actual performance, all more than 200 suppliers of Volkswagen's first new energy model in Anhui have received positive ratings, which also shows that this management model is feasible and effectively implemented.

Volkswagen China is an important way to achieve carbon neutrality and promote the long-term development of the supply chain by promoting the use of renewable electricity by promoting the use of renewable electricity by suppliers to achieve carbon emission reduction. Only by achieving a green transition in this link can we truly achieve the goal of carbon neutrality throughout the life cycle.

summary

What is carbon neutrality and full life cycle emission reduction refers to the green transformation from the supply chain, manufacturing, product use to the end of the product life cycle. Time flies, 2050 is not far away from us, so to keep up with the pace of the times, we must also lock in the development trend of carbon neutrality throughout the life cycle.

The Volkswagen Group, as a leader in carbon neutrality, has shown us many specific carbon neutrality solutions in the past year.

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