German automaker Volkswagen has extended its partnership with Guoxuan High-tech, a Chinese battery maker, to produce electric vehicle (EV) batteries in Germany.
Volkswagen, through the extension of the partnership, will construct its second EV battery plant in Salzgitter in accordance with the company’s plans made in March, to build six European plants by 2030. Production is expected to begin in 2025 and Guoxuan will be responsible for the factory’s layout, machinery, and production processes.
The carmaker announced earlier this month that it plans to get 50pc of its sales from EVs by 2030. The latest agreement aims to industrialize production at the Salzgitter plant and develop Volkswagen’s unified cell, which is set to be used in 80pc of Volkswagen’s EV models by 2023.
Volkswagen added that the end-goal is to boost charging times and ranges for electric vehicles and that it will reduce production costs by up to 50pc, expand its charging station networks and eventually move to solid-state technology to reduce costs and strengthen efficiency.