“The expansion of the plants will depend on how the market for electric cars develops,” Volkswagen’s chief technology officer Thomas Schmall told German newspaper Frankfurter Allgemeine Sonntagszeitung (FAS) in an interview.
Schmall stressed that the company’s goal of building 200 gigawatt hours of battery capacity by 2030 is “realistic, but not set in stone.” The German automaker’s decision is a cautious move as the automaker reassesses its strategy amid fluctuating demand for electric vehicles.
Volkswagen initially aimed to establish a battery capacity of up to 240 gigawatt hours by the end of the decade, of which 200 gigawatt hours would be built by its battery subsidiary PowerCo.
The plan included six factories across Europe. However, Schmall’s recent statements indicate a change in strategy, as the company is now considering scaling back these plans.
“Building battery cell factories is not an end in itself,” Schmall said, stressing that the expansion of these factories will depend on the development of the electric vehicle market.
The company has already announced three plants, located in Valencia (Spain), Ontario (Canada) and Salzgitter (Germany), with a combined capacity of up to 170 gigawatt hours. It is not known whether Volkswagen will expand these plants or if it will proceed to build new ones, such as a possible facility in Eastern Europe.
Schmall did not specify when a final decision would be made on expanding or building additional plants, leaving the future of Volkswagen’s battery production capacity dependent on market developments.
(With information from Reuters)
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