· Volkswagen pushes 2025 development strategy to choose China's built battery factory

According to reports, relevant information from the management of the Volkswagen Group revealed that with the development of automotive electrification in China, the Volkswagen Group has invested billions of dollars in China to build batteries and their component packages.
Volkswagen CEO Matthias Mueller said the Volkswagen Group is refining its group, 12 car brands and a set of key components for a long-term strategy. The new strategy is "the automotive industry's premier electrification solution." "This includes the launch of 30 all-electric vehicles by 2025."
Volkswagen expects the group to sell 2 to 3 million battery electric vehicles and plug-in hybrid vehicles every year by 2025, compared with 1 million previously planned. Matthias Mullen believes that only five years later, one-third of the Volkswagen Group's new cars will be electrified, and pointed out that in order to achieve this goal, "Volkswagen will face enormous challenges at the procurement level."
Although the current global automotive battery capacity supply is expected to be around 27 gigawatt hours (GWh), Volkswagen will need 150 GWh to meet its fleet needs. People familiar with the matter pointed out that “this is equivalent to 10 battery factories, each of which needs to invest 2 billion euros, a total of 20 billion euros.”
According to informed sources, as to the proportion of the funds directly from the public, and the proportion of suppliers from the supplier is still under discussion, because the Volkswagen Group still needs to complete its strategic map through most of the rest of the year. planning.
When talking about the location of the factory, the person familiar with the matter said, “China may become one of the preferred places. Due to the strong promotion of the Chinese government, the development of automobile electrification has become a popular trend in China.”
There is also a big advantage in setting up a battery factory in China. If Volkswagen has established a battery and battery plant in one or all of its joint ventures in China, then the group will only invest half of the funds, and the other half will be funded by SAIC or FAW.
The Chinese government hopes to ease pollution such as smog in the city center by realizing motorization of automobiles. Vehicles with an electric drive range of 50km or more are defined as “new energy vehicles” and can be exempted from restrictions on the numbered areas in major cities. New energy vehicles will also receive various financial support, although most of the funds are only available to cars that are put into production in the country, such as the Tesla Model S.
However, critics point out that this can only transfer pollutants from cities to rural areas. In addition, Chinese car companies rely on raw coal materials that are not decontaminated, meaning that carbon emissions and pollution will continue to increase.

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