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.
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.
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