Shulou(Shulou.com)11/24 Report--

CTOnews.com December 3 news, Volkswagen now announced a plan to build its battery manufacturing subsidiary PowerCo into a "global battery champion."

Although Volkswagen has been conservative since Diess left, its battery-making sub-brand PowerCo has no historical baggage, so Volkswagen has very ambitious goals for the new energy company, which was founded earlier this year, and now hopes PowerCo will achieve their goals quickly.

CTOnews.com understands that PowerCo, a 100% owned subsidiary of Volkswagen, was established in July 2022 to handle the automaker's global battery business.

Volkswagen and PowerCo only started building their battery plant in Salzgitter, Germany, in July, and it's only the first of six planned plants.

Although PowerCo is just getting started, it already has a production capacity of 40GWh in Germany. VW says its real strength lies in standardization. Volkswagen has standardized its battery designs and standardized factories that produce batteries, reducing construction costs and start-up times.

The German auto giant estimates it will generate 240GWh of battery capacity demand per year for its sub-brands.

VW also says PowerCo's final strength lies in "vertical integration," for which it is willing to put in more effort. According to reports, PowerCo will not only build lithium refining capabilities, but will also have its own lithium mine.

After demonstrating these advantages, Volkswagen revealed its future plans for PowerCo.

According to reports, its German battery factory (currently under construction) will be put into production in 2025. After that, a second plant in Valencia, Spain, will be commissioned in 2026, followed by PowerCo's establishment of a standardized battery manufacturing plant in North America and a European plant after 2027.

PowerCo will also expand its services to non-Volkswagen brands and non-automotive segments, including but not limited to maritime, energy storage and train manufacturing customers.

All in all, the focus is on PowerCo's future possibilities and sustainability.

They believe that by partnering with Volkswagen, PowerCo will build a recycling ecosystem for batteries that promises to reduce waste and raw material extraction costs.

While it's unclear how this current shift in suppliers will affect VW's current battery partners, it will be interesting to watch the industry giant figure out how to cope with the new energy wave that conservatives will struggle to cope with in the coming years.

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