Construction begins for new Volkswagen battery plant in China

Volkswagen Group China has begun construction of a battery system production factory in Hefei which will open in 2023.

The new sites’ annual 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, VW’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 reaching over 40% NEVs by 2030.”

Frank Engel, executive vice president for components, logistics, quality at Volkswagen Group China, said: “With the new components plant in Anhui, the share of value added by Volkswagen components in Volkswagen Anhui’s future electric vehicles will be about 40 percent. VW Anhui Components targets to be the providing system for our all-electric vehicles and the strategic backbone of our e-mobility offensive. This new component plant also provides a strong foundation for producing the next battery generations for the Chinese market.”