Volkswagen Group China is commencing construction of a battery system production factory in Hefei (Anhui province). VW Anhui Components Company will be the first battery system plant to be wholly owned by the Group in China.

Its initial annual capacity will be 150,000 to 180,000 high-voltage battery systems for Volkswagen Anhui’s all-electric vehicles based on the Group’s Modular Electric Drive Toolkit (MEB platform). With an area of over 45,000 square meters, the plant will be located next to the production facilities of Volkswagen Anhui, Volkswagen’s first majority-owned joint venture for all-electric vehicles. Volkswagen Group China is investing over €140 million through 2025 in the new plant and its facilities – which will begin producing battery systems in the second half of 2023.

The new plant will leverage existing synergies with the Group’s wholly owned battery plants and workshops in Braunschweig, Germany and Tianjin, China, and enhance ties and synergies with the MEB battery plants of the Volkswagen Group’s Chinese Joint Ventures. Factory staff from Germany will provide support at the international facilities currently being set up.

Employees will be trained at the Component Education Academy at the Group’s Tianjin plant, with front-line employees also receiving VR training to eliminate parts loss and accident risks, shorten the training cycle, and reduce the need for physical venues.

The manufacturing process at the new plant will consist of two production steps, each with two production lines – one for frame production and one for system assembly. Consistent with the Group’s vision of a digitized manufacturing process, the production, assembly and testing of the battery systems will leverage new production technologies and involve a high level of automation at each stage.