A Volkswagen Group board member told a German newspaper that Volkswagen is intensifying negotiations with Swedish startup Northvolt and plans to jointly produce electric vehicle batteries in Salzgitter, near its headquarters in Lower Saxony.
On May 25 local time, Stefan Sommer, a member of Volkswagen's board of directors, told the German "Securities News" that he believed that Salzgitter's battery production project would be realized. "We will step up negotiations on a more detailed plan in the coming weeks." Sommer also added that Volkswagen is also looking for potential battery production bases in other parts of Europe, but did not elaborate further.
Earlier this month, Volkswagen Group committed to investing 1 billion euros ($ 1.12 billion) in the battery project, and the company said that investment depends on certain economic prerequisites, such as electricity subsidies. In addition, SK Innovation has previously confirmed that it is negotiating with Volkswagen and revealed to Reuters that the two parties are discussing the construction of a joint venture plant.
"As part of our comprehensive electrification offensive, we plan to secure battery capacity through strategic cooperation. At the same time, we also hope to expand our capacity in Europe to support our growth plans," said Hans Dieter Pötsch, chairman of the Volkswagen Supervisory Board. Given the increasing complexity of the industry and related challenges, it is especially important to focus on our core business. "