Volkswagen employees
In Europe, the car manufacturer wants to set up six cell factories together with partners by 2030.
(Photo: Reuters)
The search for a location for a Volkswagen battery cell factory in Eastern Europe has been delayed. A decision is not expected before the end of this year, a spokesman said. “There is no pressure to act because, given the current circumstances, we are taking a little more time to make the decision.” The Czech subsidiary Skoda had originally expected a decision by the end of the year.
The Czech Republic is being discussed as a possible location for the factory, which is scheduled to start production in 2027. The Czech press agency CTK reported that the decision could be delayed by several months.
Group experts assume that the topic will be back on the agenda at the beginning of next year when the supervisory board discusses investments for the coming years. The background to the shift is likely to be the high energy prices and the economic environment in Europe, which has deteriorated as a result of Russia’s war in Ukraine.
In addition, billions in subsidies play a role. The US is promoting massive tax breaks for renewable energy technologies such as electric cars. The Swedish battery manufacturer Northvolt is already considering shelving planned investments in a new battery plant in Schleswig-Holstein in favor of a factory in the USA.
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Federal Minister of Economics Robert Habeck wants to react to the subsidies in the USA, which are excessive from a European point of view, with similar measures. The “Handelsblatt” reported that the Greens politician wanted to respond to US President Joe Biden’s “Inflation Reduction Act” (IRA), worth billions, with his “own European industrial policy agenda”.
The Wolfsburg-based company had recently started looking for a location for a battery cell factory in Canada, citing ideal economic conditions in the country as the reason. Europe’s largest car company could also build a battery factory in the USA. The group operates a large car factory there in Chattanooga in the US state of Tennessee, where the electric SUV ID.4 has recently rolled off the assembly line.
In Europe, Volkswagen, together with partners, wants to set up six cell factories with a total output of 240 gigawatt hours by 2030. In Germany, the foundation stone was laid for a large factory in Salzgitter in July. Two further locations are fixed in Sweden and Spain. In addition to the Czech Republic, Hungary, Poland and Slovakia could also be considered for a factory in Eastern Europe.
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