Volkswagen Invests Further $620 Mln In Swedish Battery Cell Partner Northvolt
(RTTNews) – Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) announced Wednesday a contribution of $620 million or about 500 million euros in a financing round of its Swedish battery partner Northvolt AB with a total volume of $2.75 billion. The German automaker will maintain its about 20 percent stake in the cell producer.
Volkswagen had already invested about 900 million euros in Northvolt in June 2019, and holds a seat on the Board of Directors.
The funds are to be used for capacity expansion in the fields of production, recycling and research and development.
Among other activities, Northvolt intends to expand the capacity of its Northvolt Ett gigafactory in Skellefteå, Northern Sweden to 60 GWh from 40 GWh per year, in order to meet higher demand from customers.
According to Volkswagen’s Thomas Schmall, batteries are one of the key success factors in its unprecedented electric offensive.
The production of Volkswagen premium cells is to be concentrated at Skellefteå in cooperation with Northvolt. Production of these cells is due to start in 2023 and the annual capacity intended for Volkswagen is to be built up step-by-step to as much as 40 Gwh.
The second Volkswagen gigafactory is located in Salzgitter and will produce the standard cell for the volume segment from 2025.
Volkswagen expects to commission six cell factories in Europe by 2030 together with its partners.