VW and Bosch aim to industrialise manufacturing process for battery cells

Volkswagen has signed a memorandum of understanding with Bosch to explore the industrial-scale solutions for battery manufacturing in Europe.

The companies aim to supply the entire range of processes and components needed for the large-scale manufacture of battery cells and systems. The partnership will draw on complementary areas of expertise, with Volkswagen becoming a major battery cell manufacturer, and combining Bosch’s know-how in factory automation and systems integration.

The companies aim to supply the entire range of processes and components needed for the large-scale manufacture of battery cells and systems. The move comes as demand for the market continues to grow. In Europe alone, various companies plan to build cell factories with a total yearly capacity of around 700 gigawatt-hours by 2030.

The corresponding memorandum of understanding was signed by Thomas Schmall, Member of the Board of Management of Volkswagen Group in charge of Technology and CEO of Volkswagen Group Components, and Rolf Najork, Member of the Board of Management of Robert Bosch Group and Chairman of the Executive Board of Bosch Rexroth.

Thomas Schmall said: “Europe has the unique chance to become a global battery powerhouse in the years to come. There is a strong and growing demand for all aspects of battery production, including the equipment of new gigafactories. Volkswagen and Bosch will explore opportunities to develop and shape this novel, multibillion-euro industry in Europe. Our decision to actively engage in the vertical integration of the battery-making value chain will tap considerable new profit pools. Setting out to establish a fully localised European supply chain for e-mobility made in Europe certainly marks a rare opportunity in business history.”

Rolf Najork added: “Together with Volkswagen, we seek a path to industrialise production processes for battery cells with standardised equipment. We have the best prerequisites for this: Bosch is not only the world’s biggest automotive supplier, but also one of the leading suppliers of factory equipment. We understand how battery technology works, and know how to manufacture it. With more than 135 years of automotive experience and our proven industrialisation expertise, we want to serve the growing demand for batteries. European industry has the potential to become a technology driver for the ecological transformation of the economy.”

Volkswagen and Bosch have formed the project unit with the target of preparing the establishment of the new company by the end of 2022.