Volkswagen, To Build Affordable EV Through Batteries and Raw Materials Investment

German automaker Volkswagen has announced its plans to invest 180 billion euros (approx. RM865 billion) in battery production and securing raw materials.

Furthermore, the carmaker stated on Tuesday (March 14) that more than two-thirds of the company's five-year investment budget is now allocated to electrification and digitalization, including up to 15 billion euros (RM72 billion) for batteries and raw materials.

According to Volkswagen Group Chief Financial Officer Arno Antlitz, he told analysts that if the market did not grow as expected, the company might postpone some battery investments due to the recent market instability caused by the failure of Silicon Valley Bank.

To keep its market share and lower the price of electric vehicles, Volks continues its mission to bring an approximately 25,000-euro (RM120K) vehicle to market by 2025 which is built on a second-generation version of its all-electric MEB platform.

Antlitz expressed hope that by then, the company would have struck enough raw material sourcing deals and expanded battery production to reduce EV costs, 40% of which are due to battery costs.

Source: Reuters