Auto giant Volkswagen has announced it is building a new electric vehicle (EV) battery system factory in eastern China’s Hefei city and plans to start production in 2023.
The German automaker is building the factory for electric vehicles as part of a majority-owned venture with JAC. It also holds a stake in the EV battery maker Gotion which is also based in Hefei.
It said it would invest more than 140 million euros ($164 million) in the battery plant by 2025. The factory’s initial capacity will be 150,000 to 180,000 battery systems a year for local EV production.
Also on AF: Singapore’s First Electric Ferries Set Sail for Shell Island Refinery
Volkswagen rolled out five ID. series electric models in China, the world’s biggest car market, this year. It sold around 7,000 such vehicles there last month and aims to deliver 80,000 to 100,000 units in total this year.
Volkswagen is also in talks to tighten its grip on the Hefei venture, which has reportedly sparked tensions with its other Chinese partners who fear they could be sidelined.
- Reuters with additional editing by Sean O’Meara
Read more:
Supply Chain Snarls Seen Costing Automakers $210bn This Year
Xiaomi Funding Lifts Auto-Chip Firm Black Sesame’s Value To Near $2bn
