Electric vehicles Energy

Volkswagen is going big in batteries to reduce EV prices

When it comes to companies moving fast to compete with Tesla, the domineering carmaker in electric vehicles is the Volkswagen. From their recent moves, despite the massive gap between the two companies, VW might catch up with Tesla thanks to the pocket-friendly prices. In the company’s recent announcement, they are working on a massive expansion in their battery production. Why is that? Car batteries in EVs are vital and play a role in their performance, explaining why carmakers like Tesla are producing their batteries. This step will help VW get an edge in the EVs race to dominance.

The German carmaker, in their announcement, stated that it is planning on building six giga-factories all over Europe over this decade, aiming at a maximum battery capacity of 240-gigawatt hours per year. This power is adequate to power about four million Volkswagen ID.3 electric vehicles. If things go according to VW’s plans, the first two battery factories will serve Skelleftea, Sweden, and Salzgitter in Germany.

One of the fears people have in adopting electric vehicles is where to charge their cars? This question is something the VW’s organization has put in mind since its latest announcement stated that they are investing in new charging point networks. It will install these technologies across Europe, China, and the United States.

How do Volkswagen plan on beating Tesla and other carmakers? The VW’s primary strategy is battery technology, where they plan to drive down the battery cost systems by creating a unified battery cell. This battery system is expected to go into the market in 2023 with about 80% installation in the companies’ electric vehicles. For environmental reasons and to cut costs, VW plans on recycling most of their raw materials necessary in battery production.

VW’s CEO, Herbert Diess, stated that the one size is perfect for almost all cell designs and will reduce the battery costs up to 50% compared to the current prices. Why is that? Low prices mean electric vehicles are more affordable and attract more customers to invest in them. Herbert explained that E-mobility is a core business as the world race for the best batteries in a world with zero-emission targets.

The company is working alongside several battery makers worldwide and intends to operate around 18000 charging points in Europe and is currently at 3600. Besides, it is working on delivering a third of the planet’s electric vehicles’ demand. Also, it is expanding these electric charging points in China and the United States with targets of 17,000 and 3500 by 2025, respectively. In comparison, Tesla currently operates 20,000 fast-charging points globally, a figure above all other carmakers.

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