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