Volkswagen builds battery system factory in Anhui (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 EUR 140 million until 2025 in the new plant and its facilities, with the start of production (SOP) targeted for the second half of 2023. Dr. Stephan Wöllenstein, CEO Volkswagen Group China, said, “Volkswagen Group's platform strategy is a competitive advantage which we are transferring into the e-mobility era. With a significant increase of battery-electric vehicles (BEVs) in the future, we need to focus on keeping key components like battery systems in our own value chain, allowing us to leverage Group-wide synergies and innovations. Volkswagen Anhui and VW Anhui Components Company, alongside our two strong Joint Ventures, are crucial to our electrification strategy and to achieving our goal of the Volkswagen Group China fleet reachingover 40% NEVs by 2030." The new plant, VW Anhui Components Company, will be located in the nearby supplier park of Volkswagen Anhui’s EV-production site, which brings logistical and cost efficiencies and a faster time-to-market, a press release states. The new premises comprise over 45,000 square meters, which equals 8.4 football fields. As of SOP, approximately 200 employees will work at the new factory.