Volkswagen has contributed an additional RM2.5 billion to Swedish battery cell manufacturer, Northvolt AB. Now maintaining its stake in the company at around 20%, the added funds will be used to expand its capacity production and recycling, as well as research and development. That's a whole lot of cash, but they're in for the long run when it comes to the electrified automotive industry.
According to Thomas Schmall, Group Board Member for Technology and CEO of Volkswagen Group Components, "Batteries are one of the key success factors in our unprecedented electric offensive. In the major area of green battery cells, we are assuming a pioneering role in Germany and Europe together."
"With this investment, we are strengthening our strategic partnership with Northvolt as a supplier of sustainable battery cells which are produced using renewable energy and are comprehensively recyclable," added Arno Antlitz, Group Board Member for Finance and IT.
Volkswagen started its investment with Northvolt AB back in June 2019 when they acquired 20% of shares (as well as a seat on the Board of Directors) amounting to RM4.5 billion. The brand's premium cell production is due to start in 2023 and they're expecting to commission up to six different factories across Europe by 2030. The main focus right now would be in Skellefteå, Sweden and Salzgitter, Germany, which to be followed by more locations to be announced in the near future.