VW assigns 20 billion euros in battery orders, speeds EV push

VW assigns 20 billion euros in battery orders, speeds EV push

Over the past two years, German carmakers Volkswagen, Daimler and BMW announced 4.7 billion euros (R68bn) of investment worldwide in electric cars, the study by consultancy EY found.

The Volkswagen Group wants to speed up the "Roadmap E" transportation electrification strategy unveiled previous year, and has announced plans for more than a dozen new production sites for electric vehicles and massive contracts for the batteries which will power them.

The Volkswagen Group has confirmed it will scatter at least 16 electric-car production plants around the world within four years. Volkswagen Group has set itself a goal of selling three million electric cars a year by 2025, and to offer a battery-fuelled or plug-in hybrid version of each of the group's 300 models by 2030. VW aims to sell more than 1 million cars powered exclusively by batteries by 2025, after selling just 43,000 electric models in 2017.

Chief executive officer Matthias Müller told the media conference that from 2019 there will be a new electric vehicle coming into production "virtually every month". This year alone, VW plans to introduce another nine new vehicles, three of which will be pure EVs. By making this strategy successful, Volkswagen will be able to launch the bigger fleet of environment-friendly zero-emission cars.

German auto maker Volkswagen is planning to plough around €20 billion into a string of electric vehicle projects across Europe and China.

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All of those electric cars will require a lot of batteries, and Volkswagen claims to have signed contracts with suppliers worth almost $25 billion. The company, which has struggled to secure sources of cobalt, a critical component for modern batteries, said that it's working on ways to reduce the amount of the element needed for its electric cars, suggesting ongoing concerns even after setting up supplies for its initial electric-car rollout. The company will shortly launch it mass-market Model 3.

The company still reiterated its commitment to "conventional vehicles", which we assume means diesel and gasoline vehicles. Volkswagen added that it is now looking for suppliers in North America.

"We are investing strongly in tomorrow's mobility, but without neglecting the current technologies and vehicles that will continue to play an important role for decades", Mueller said. "We are putting nearly Euro 20 billion into our conventional vehicle and drive portfolio in 2018, with a total of more than Euro 90 billion scheduled over the next five years".

It plans to pay for all this EV extravagance by slashing costs in other areas of development.

Last year, it generated $8 billion in global revenues.

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