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Volkswagen and Northvolt form joint venture for Li-ion battery production in Germany; 16 GWh initially

Volkswagen AG and Northvolt AB have created a 50/50 joint venture to build a factory for lithium-ion batteries. Construction of the production facility is scheduled to start in Salzgitter (Lower Saxony) in 2020. Start of production is planned for the end of 2023/beginning of 2024. The initial annual output is to be 16 GWh.

The finalization of the joint venture is the result of an agreement which both parties concluded in June. Part of the approximately €900 million (US$993 million) invested by Volkswagen is now flowing into the joint venture. Another part goes directly to Northvolt. In return, Volkswagen has received about 20% of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.

As part of its electrification strategy, the Volkswagen Group alone has an annual demand of more than 150 GWh from 2025 in Europe—and also in Asia at the same level.

The Group is planning to launch almost 70 new electric models in the next ten years. As a result, the projected number of vehicles to be built on the Group’s electric platforms in the next decade will increase to 22 million. Volkswagen is therefore investing more than €30 billion (YS#33 billion) into the electrification of the fleet by 2023.

Volkswagen has signed off a comprehensive decarbonization program aimed at achieving a CO2-neutral balance in all areas from fleet to production to administration by 2050.



16GWhr? 2024? That doesn’t seems big enough or soon enough if VW Audi Group was seriously trying to transition to EVs. After all Tesla is producing 24GWh of batteries annually now at GF1 and is producing about 7000 vehicles per week with them (plus other projects)

So how many electric vehicles can VAG produce with only 16GWh? How many ICE Golfs do they currently make per week? I hope they have other battery contracts out there or we’ll never get the transition done before I die!


I believe 16GWh would be Northvolt’s largest contract and would be adequate for 200k 80kWh vehicles or 400,000 40kWh vehicles.

They do have other suppliers;

“they [VAG] issued battery supply contracts worth $48 billion with existing battery manufacturers. The contracts are estimated to be for about 300 GWh of battery cells.

VW split those billions worth of contracts between several companies: Samsung SDI, LG Chem , SK Innovation, and CATL.”


As long as people will keep buying the obsolete ICEVs, VW will keep moving the transition goal posts and working hard to slow down the necessity to build EVs. It's pretty frustrating to watch them build ICEs and continue polluting when we know that EVs are a much better product in every way.


Of course they have other suppliers,
you don't get to be one of the largest car makers without that.

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