Volkswagen Orders Up $20 Billion In Batteries

APR 2 2018 BY DOMINIK WILDE 24

The tech will kickstart the company’s electric overhaul.

You know that Volkswagen keeps telling us that it’s going all electric in the next few years? Well, it’s just spent a lot of money to get that product revolution going. The German manufacturer has selected partners for its upcoming electric vehicle range, and has just put orders in for close to £18 billion of batteries and related technology.

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Volkswagen I.D.

Volkwagen confirmed that the batteries would be used in cars sold in Europe and China – its biggest markets – with technology for the US market set to be secured soon.

The company currently produces a small range of electric cars in three of its factories worldwide. However, production will spread to as many as 16 factories by the end of 2022. It aims to sell 3 million electric cars per year across all of its brands (including the likes of Audi, Seat, and Skoda) by 2025 and it also wants to offer an electric version of each of the group’s 300 models by 2030. Despite still reeling from the Dieselgate fiasco and the fines that came with it, Volkswagen has already set aside more than £30 billion to invest in the production of electric cars.

‘We have pulled out all the stops over the past months to implement the Roadmap E swiftly and resolutely,’ chief executive Matthias Mueller said at a news conference earlier this week.

LG Chem, Samsung and Chinese battery maker Contemporary Amperex Technology Co Ltd will supply batteries and technology to Volkswagen, which has no plans to start producing its own batteries, according to Mueller.

‘Building up expertise and mastering the technology does not necessarily imply that we want to start large-scale assembly of batteries ourselves,’ he said. ‘Others can do it better than we can.’

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24 Comments on "Volkswagen Orders Up $20 Billion In Batteries"

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EVShopper

$18B in batteries at $100kWh at the pack level is about 3 million 60kWh packs. Course some of these could be slated for smaller BEVs or PHEV. But considering VW builds 10millions vehicles per year, it’s a small start.

Bert

You are calculating with a $18B order and 3M cars in the year 2025 and ?
The article talks about a single $18B order now. So there is no reason to divide $18B by 3M in my eyes.

Benz

Companies that produce batteries have endless demand for their products.

They will need to bring more factories online every year.

Alex

Compagnies that produce the best batteries will have endless demand. The others will have difficulties.
That’s why some car makers have waited before going “all in” on EV. (think Nissan)

Tom

The problem is that the definition of ‘best’ changes from situation to situation. If it didn’t then there would be no such two cars as a Mercedes S class and a Mitsubishi Mirage on the same planet.

drpawansharma

Finally some resolute action by VW. I hope Ford learn some lesson from it.

pjwood1

But the read from this news is also that pace in the US will be slower than Europe/China. City diesel-bans and hard core Chinese policy-making may drive that, but so too might be the fact that the much smaller group of diesel-defrauded (500k/11mn) got paid, in US.

I just found this statement interesting: “Volkwagen confirmed that the batteries would be used in cars sold in Europe and China – its biggest markets – with technology for the US market set to be secured soon.”

It’s coming up on a year, since VW was known to be shopping for 20bn Euros worth of battery contracts. They are practically there, and it looks to me like the US is becoming a question mark?

pjwood1

(500k/11mn) got paid, in US. –meaning, relatively speaking, we’re happy.

Steve Withers

Trump and the GOP are dragging America backward. Only the CARB states are pulling ethically vacant company’s like Ford, GM and VW forward to a low / no emissions era.

Mil

Given all the things VW have said and gone back on, I’ll believe it when I actually see them making production EV cars at mass scale. Until then, I’ll file it under “lip service” along with so many of their other announcements.

Pushmi-Pullyu

Exactly. VW is the “King of Vaporware” when it comes to EVs.

I’ll believe it when we see pictures of actual changes being made to actual production lines in actual VW assembly plants, to produce EV models.

Or, when we see actual walls going up on actual buildings where VW claims to be building battery factories. That needs to happen a couple of years in advance of actually putting the EVs using those batteries into production.

jimjfox

The King of Know-All Negativity speaks!

Purchase Order-Legal status
“Although a typical purchase order may not contain contract language (in fact most contain little more than a list of the goods or services the buyer desires to purchase, along with price, payment terms, and shipping instructions), the purchase order is a specially regarded instrument regulated by the Uniform Commercial Code or other similar law which establishes a purchase order as a contract by its nature. Yet despite the nature of the purchase order as a contract, it is common to accompany the acceptance of a purchase order with a legal document such as the terms & conditions of sale, which establish specific or additional legal conditions of the contract.[4]”

Sounds like more than “vaporware”.

jimjfox

Error?- This report originated in UK, seemingly as the order was stated as £18 billion which is about
$ 25 billion.

Stephen

VW does put out an ridiculous number of EV related press releases and we could do without some of the far-fetched concept cars. But where I live e-Golfs are all over the place and seem equally popular as Nissan Leafs. So I have to give them credit for making a practical, affordable, and fun to drive EV that’s definitely not vaporware.

Lamata

Until I see Product in Production & on the Streets , I believe “NOTHING” VW Execs Say ..We’ve had Much More Vaporware Than Necessary from VW Thus Far ! …These Dogs Piss on your Leg And Tell it’s Raining …… lol

Someone out there

$20 billion huh? I bet they got a pretty nice price on those batteries. And they didn’t have to waste money on building a battery factory in the desert.

Alonso Perez

I’m sure they will spend a lot of money on their suppliers, who need to build those factories. There is no free lunch. Giant battery factories don’t just drop from the sky.

Jim

So VW orders $20 billion in batteries for non-existing EV cars. Great. And I have a bridge to sell if anyone’s interested.

jimjfox

And had they built cars first you’d be squealing how stupid they were for not *securing battery supply…
Did Tesla not use the same *philosophy?
https://www.theverge.com/2015/4/22/8466755/tesla-battery-company-not-a-car-company

Someone out there

There is a world outside of the US. VW sells a lot of plugins in Europe

Jamesjm

I’ll tell you what works – leave comments like these on VW’s Facebook. Believe me, it does help to bring VW enthusiasts into fold and get them to understand that EV is the answer to the pollution. Most of them still think that batteries are bad for the planet. It’s up to us to educate them. Lastly, watch the amazing Netflix doc series, “Dirty Money”. The first in the series about VW will have you shaking your head. The producer Alex Gibney deserves accolades for his investigative journalism. Check it out….

Mister G

YAWN

Martin Winlow

“…it also wants to offer an electric version of each of the group’s 300 models…”

Now, do you mean ‘electric’ or IEV’s version of ‘electric’ (which is also probably VW’s definition of ‘electric’)… which probably means ‘hybrid’?

Jason

Batteries and related technology, so really how much is for the batteries and how much for the related technologies?
They sure will get there, but this order could be for anything. Hybrids, plugin hybrids or BEV. They make a ton of cars, so just changing their platform to PHEV would take an enormous number of batteries.
Anyway, I’m sure all the VW fans will love whatever they do. Unfortunately, where I live, without the DC charging infrastructure it is all pretty pointless. On that point, maybe it is charging infrastructure that is the related technologies.