The automobile world is experiencing a transition period to electric vehicles. Many giant automotive companies are making huge investments to keep up with this transformation. Volkswagen, one of the most important players in this sector, invests heavily in batteries, which is one of the problems in electric cars.
Volkswagen establishes PowerCo to produce batteries for electric vehicles
An important breakthrough for the electric car world has taken place today. The Volkswagen group has made a $20.38 billion investment to build electric vehicle batteries, launching a subsidiary called PowerCo.
Volkswagen has introduced a new initiative to produce sufficient capacity, materials and consumables. The company will showcase studies addressing many of Volkswagen’s needs, from research and development of new technologies to raw material mining and end-of-life recycling.
The company is currently working as LG Energy Solution and SK Innovation. It is envisaged that the new venture can reduce costs in battery production. It is said that this situation may reduce the prices of electric cars in the future.
Volkswagen plans to increase the number of facilities to 6 by not limiting battery production to this factory. Together with this and the facility in Skelleftea in Sweden, investment plans are underway in Valencia, Spain, Eastern Europe, North America. If these plans come true, Volkswagen will have a production capacity of 240 gigawatt-hours per year.
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