Volkswagen is increasingly concentrating on electromobility and is intensifying its partnership with the Chinese company Gotion High Tech in the production of battery cells. In addition to China, Spain should also become a supporting pillar in the future.
The news came as a surprise to some. VW and Northvolt are going separate ways in the production of battery cells. It seems as if the Swedes from VW are not acting fast enough and the company is therefore forced to act in production in Salzgitter in order to be able to realize the high-flying electric car plans. Gotion High Tech is now replacing Northvolt. Many are likely to hear the name of the Chinese company for the first time, but the Chinese battery cell manufacturer is well known to insiders.
Gotion High Tech: First Bosch, now Volkswagen
The Chinese approach their business in Germany with remarkable thoroughness. The first step is the planned takeover of the Bosch plant in Göttingen, including all shares in Robert Bosch Aftermarket Solutions GmbH. The takeover makes perfect sense for the Asian company. In Göttingen, the supplier builds starters, generators, ignition distributors, air volume and air mass meters for the automotive industry.
So now also VW. Instead of Northvolt, the Chinese will manufacture the battery cells with VW in the large plant. In the picture of the signing ceremony, which is obligatory for Asians, you can see many smiling faces and thumbs stretched vertically upwards. Not much pomp: At the front at a plain table, VW CEO Herbert Diess with his management circle and in the background on a screen, the representatives of the Chinese company smile friendly.
Volkswagen invests in Chinese partners
The marriage between the German automobile company and the Chinese battery cell manufacturer is not entirely unexpected. Last year, VW entered Gotion High Tech with a billion euros. VW thus holds 26 percent of the shares and is the largest shareholder. Another billion went into the JAC Volkswagen joint venture. “The electric car segment is growing rapidly and offers great potential for JAC Volkswagen. With our strategic stake in Gotion, we are also actively promoting the development of battery cells in China,” said CEO Herbert Diess reliable partners, Volkswagen is further expanding its e-offensive in China. “
So China is moving even more into focus. Whether this strong focus on the Middle Kingdom is the blissful path remains to be seen. It is not surprising that VW is looking for other partners in battery cell production. The Koreans from LG and SKI had delivery bottlenecks almost two years ago, and it remains to be seen whether Gotion will remain a reliable partner forever. After all, the goal of the Chinese is to become a world company. Germany is an important step on this path. Anyone who works successfully with Europe’s largest car manufacturer automatically qualifies for further alliances.
By the way, Northvolt is not completely out of the running with the Lower Saxony car manufacturer. VW recently invested half a billion in the production of battery cells in Skellefteå and “is working with Northvolt towards a start of production in 2023,” says Wolfsburg.
Spain should play a leading role in electromobility
And VW is positioning itself even broader. Spain should also become a mainstay for the production of electric cars. VW plans to manufacture the Group’s entire “Small BEV Family” from 2025 in the southern European country. The planning is currently in full swing, above all the economic framework conditions, in particular the impressive funding in the sense of VW, still need to be clarified. Given the current economic situation, it is difficult to imagine that Spain will not do everything possible to try to attract such a large fish. The country also offers stable political conditions and is a member of the EU.
The climatic conditions for the production of battery cells are favorable anyway. There is enough sunshine to generate solar power, which is necessary for the most climate-neutral production of battery cells. The Volkswagen Group is currently examining the option of building a giga factory together with a strategic partner. If everything goes according to VW, the plant could have an annual capacity of 40 gigawatt hours by the end of the decade.
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