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VW On The Charge In China With $164m EV Battery Factory Plan

The German carmaker says its site in Hefai should be able to roll out up to 180,000 electric vehicle systems by 2025

A fixed Volkswagen EV charging point at the Auto Shanghai show earlier this year. Suzhou's new chargers will be brought to the car by a robot. Photo: Reuters


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.


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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


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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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