Volkswagen is participating, with a contribution of US$620 million (about €500 million), in a financing round of its Swedish battery partner Northvolt AB with a total volume of US$2.75 billion.
The Group will thus maintain its stake in the company constant at about 20 percent. 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 Skelleftea, Northern Sweden from 40 GWh to 60 GWh per year, in order to meet higher demand from customers.
The second Volkswagen gigafactory is located in Salzgitter and will produce the standard cell for the volume segment from 2025. It is also expected to reach an annual production volume of up to 40 GWh. Both gigafactories are to be operated using electric power from renewable energy sources.
All in all, Volkswagen expects to commission six cell factories in Europe by 2030 together with its partners with a view to safeguarding the ramp-up of electric vehicle production. After Skelleftea and Salzgitter, possible locations and partners for the next cell factories are already being considered.