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VW CEO Diess supports fondness to build battery cells for EVs in Europe



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Christiaan Hetzner Twitter

Automotive News Europe

May 7, 2018 09:48 CET

BERLIN — Volkswagen Group CEO Herbert Diess corroborated a European attention fondness for battery dungeon prolongation amid fears that a segment will remove out to Asian rivals as EV sales take off and record advances.

Diess pronounced VW has scarcely cumulative all a tender materials it needs to finish a initial proviso of a electric-car strategy. The association has so distant picked partners to yield battery cells and associated record value around 40 billion euros ($48 billion) for a electric-car program, about 80 percent of a designed volume. This is double a figure that Diess’s prototype Matthias Mueller gave in Mar during a display of a VW Group’s annual results.

“These total clearly prove we need to free an complete dialog on building adult battery dungeon ability in Europe in an fondness with industry,” Diess told shareholders during a company’s annual assembly final Thursday.

VW expects it will need to squeeze an annual volume of battery cells homogeneous to 150 gigawatt-hours by 2025, equating to roughly 50 billion euros value of business. By that indicate VW Group aims sell adult to 3 million full-electric cars.

VW’s successful labor leaders have demanded a automaker inspect an industrial scale prolongation of battery cells. They were undone by Mueller’s refusal to plead a emanate over a commander plant in Salzgitter, Germany, due to go into prolongation subsequent year. “We can't obey wholly a prolongation of battery cells over to a Koreans and Chinese,” Bernd Osterloh recently told Manager Magazin.

Diess pronounced on Thursday that VW was committed “to benefit a required expertise for dungeon record in a Center of Excellence in Salzgitter.”

One VW source pronounced a emanate was “highly political,” with unions opposite a German automobile attention job for dungeon prolongation notwithstanding a intensely high turn of automation in any dungeon plant contra a battery container plant. The problem is therefore a appetite costs, not a labor costs. “That’s since Diess suggested ‘Europe’ [rather than Germany proper], given electricity costs are reduce in a East. Then again we also don’t wish such an EV dungeon plant to be powered by blazing coal, so it’s still not clear,” a source said.

Whereas countries like Poland have a comparatively unwashed appetite grid, Scandinavia has cleaner hydroelectric appetite and Iceland copiousness of consistent geothermal power. Cells are heavy, however, so VW thinks they should be made comparatively tighten to production. The association is building a Volkswagen ID battery powered cars primarily in Zwickau nearby a limit to Poland and Czech Republic.

Capacity rush

Europe lacks big-scale battery dungeon prolongation comforts so automakers are sport for battery dungeon capacity to broach on their bullish EV targets.

The European Union is subsidy a EU Batteries Alliance to emanate a opposition battery dungeon prolongation in Europe.

Daimler pronounced this week that it has awarded a contract for provision electric automobile battery cells to a new player, China’s Contemporary Amperex Technology (CATL). The Chinese supervision might however behind divided from a taciturn requirement for domestic EV cars to source their cells from domestic suppliers as partial of a marketplace liberalization. Volkswagen for instance had to switch from Panasonic to CATL cells.

Daimler primarily invested in possess dungeon production, building a bureau in Germany, though it was squeezed out of a marketplace due to a uncompetitive costs during a finish of 2015. Daimler has pronounced it would usually cruise reworking a preference for a subsequent era of battery cells, such as solid-state or lithium-sulphur cells.

LG Chem will open what it says will be Europe’s largest lithium ion battery bureau in Poland this year to furnish all battery components from electrodes to cells, modules, and packs. Korean rival, Samsung SDI, is building a plant in Hungary that will be prepared this year.

Sweden’s Northvolt is seeking during slightest 4 billion euros ($4.7 billion) to open a plant in a north of a nation to opposition a scale of Tesla’s Gigafactory in a Nevada desert.

Robert Bosch, a one association in Germany that seemed many meddlesome in producing cells, pronounced progressing this year it would not follow by since it would need to deposit 20 billion euros in a severe marketplace dominated by 5 Asian suppliers.

You can strech Christiaan Hetzner during christiaan.hetzner@gmail.com.


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