Volkswagen Scales Back EU, North America Battery Cell Plants Expansion
MEB EV battery pack produced at Volkswagen's Brunswick plant.
German automaker Volkswagen (VW) is reportedly scaling back on expanding its battery cell plants in both Europe and North America due to the on-going slump in sales for electric vehicles (EVs).
“Expansion of the plants will depend on how the market for e-cars develops,” adds Thomas Schmall, VW’s chief technical officer (CTO), to a German newspaper recently. Prior to this, VW had iterated plans of establishing six battery cell plants by 2030 with a targeted annual output of 240 gigawatts (240 GW).
VW’s battery division PowerCo recently begun construction of two factory sites in Europe, one in Salzgitter, Germany that’s set to begin output next year (2025), followed by a second plant in Valencia, Spain by 2026. Similarly, a third plant in Ontario, Canada, also sees early construction underway now.
VW's CTO Thomas Schmall. The exec confirmed the automakers plans to scale back from expanding its battery cells production in both Europe and North America.
VW had initially planned to establish up to six battery cell plants by 2030. That may not be the case now due to waning EV sales.
"We are currently planning to produce up to 170-gigawatt hours at the three sites in Salzgitter, Valencia and Ontario," continued Schmall. The exec also confirmed that VW reallocated capacities and is building fewer batter factories, though the Canadian plant noted will be a ‘very large’ one.
If needed, both plants in Valencia and Ontario can be easily expanded to meet the initial target of outputting 200-gigawatt hours (GWh). "I do not yet know whether the expansion in Spain and Canada will happen. But it is certainly feasible in the six years up to 2030 if it is needed," Schmall elaborated.
VW's current range of EV include the ID.7 GTX saloon and ID.7 GTX Tourer estate pictured.
Schmall didn’t say if VW will produce lithium-iron phosphate (LFP) cells in Salzgitter. Said battery type boast lower production costs compared to nickel manganese cobalt (NMC) type, and is touted as the key for European automakers to produce affordable EVs and fend off Chinese rivals.
Instead, the exec confirmed that VW will begin producing solid-state batteries based on QuantumScape technology within this decade, with said battery type promising both longer range and faster charging abilities.
Source: FAP & Reuters via Automotive News Europe
Gallery








Written By
Thoriq Azmi
Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/
JPJ Running Numbers
KUALA LUMPUR
VPU2767
SELANGOR
BSJ2557
JOHOR
JYH6181
PULAU PINANG
PRU4978
PERAK
APB5430
PAHANG
CFD6406
KEDAH
KGC4782
NEGERI SEMBILAN
NEH2867
KOTA KINABALU
SJM9620
KUCHING
QAB2947M
Last updated 03 Oct, 2025
Fuel Price
Petrol
RON 95
RM 2.05
RON 97
RM 3.21
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.93
EURO 5 B7
RM 3.13
Last updated 25 Sep, 2025
Related News
VW Considers More Cost Cuts To Turn Things Around
Volkswagen is considering additional cost cuts to support the company's growth.
01-02-2025
Volkswagen Announces Major Job Cuts In Cost-Saving Move
Volkswagen announced that it will reduce capacity in its German operations and lay off over 35,000 employees in the upcoming years.
23-12-2024
Recent VW Patents Suggest Possible New Model Names
VW has officially registered several new model names that allude to upcoming SUV models.
19-04-2024
VW, Mobileye Intensify Autonomous Driving Tech Partnership
Volkswagen Group announced that it has strengthened its collaboration with Israeli automaker Mobileye.
24-03-2024
VW ID.Buzz Gains Hotter GTX Guise With 335 HP Dual-Motor Setup
BMW ID.Buzz retro-styled EV van gains splicy new GTX guise featuring peppy 335 HP dual-motor driveline.
22-03-2024
Report: Audi TT And VW Scirocco Could Return As EVs Using Porsche Platform
Reports online tips the Audi TT and VW Scirocco set for rebirth as EV sportscars using Porsche-developed platform.
23-02-2024
Volkswagen ID.7 Tourer Revealed – An EV Estate With Up To 685 KM Range
The Volkswagen ID.7 Tourer is here to charge up the EV estate genre in Europe with up 685 KM range.
20-02-2024
Kia, BMW, VW, Toyota And Kawasaki Capitalise On US Automakers’ Super Bowl LVIII Absence
Kia, BMW, VW, Toyota and Kawasaki capatalise on US automakers’ absence in Super Bowl LVIII advertisements.
13-02-2024
Latest News
BYD Surpasses Tesla in Global Battery Electric Vehicle Sales
BYD has surpassed Tesla in its global battery EV sales, with more than 1.6 million BEVs sold as of Q3 2025.
03-10-2025
Betamek partners China’s Yibang to localise EV charging tech in Malaysia
Betamek has teamed up with China’s Yibang New Energy to assemble and supply critical EV charging communication devices in Malaysia.
03-10-2025
Toyota bZ3X EV SUV Sees RHD On Sale In HK & Macau At A Premium
China-made Toyota bZ3X EV SUV sees RHD version go on sale in Hong Kong and Macau, but at a stiff premium.
02-10-2025
Chery V23 EV Debuts in Thailand – iCaur V23 Rebadge, Malaysia Next?
Thailand’s new Chery V23 EV is essentially a rebadged version of the iCaur V23 EV SUV. Coming to Malaysia soon?
02-10-2025
Microlino EV Previewed in Malaysia – First in Asia, 228 KM Range, Launching in 2026
Malaysia becomes the first market in Asia to preview the Microlino EV, ahead of its planned debut later in 2026.
02-10-2025
Beyond Lithium: Standards, Policy, and Scale Drive Sodium-ion Momentum
China is fast-tracking standards and industry support, putting sodium-ion batteries on track for commercial rollout within two years.
02-10-2025
Chinese Govt Announces New 2026 Export Permit Rule For EV Makers
China take aim at reputation for cheap exports, announces new ruling that sees EV makers requiring ‘export permit’ starting in 2026.
30-09-2025
PRO-NET Launches First DC Charging Hub at Proton Tanjung Malim
PRO-NET’s first DC charging hub has officially opened, located at the Proton Tanjung Malim main admin building.
30-09-2025
Show More
trending_flat