Demand Puts EV Battery Production In the Fast Lane
Monday, May 31, 2021
Speedbump or pothole? Either way, a global shortage of electric vehicle (EV) batteries is disrupting new and established manufacturers’ plans to deliver their product to consumers in the volumes and timeframes they first envisaged. That’s an opportunity for those looking to supply the demand, much of which is driven by local, state and national goals to reduce carbon emissions significantly in coming years.
In March, for example, Volkswagen Group announced it is “pushing ahead at full speed with the development of production capacities in Europe in order to meet the increasing demand for battery cells,” according to a company release. “Together with partners, we want to have a total of six cell factories up and running in Europe by 2030 thus guaranteeing security of supply,” explained Thomas Schmall, Member of the Board of Management of Volkswagen Group for Technology, and CEO of Volkswagen Group Components. The new factories are expected to produce cells with a total energy value of 240 GWh per year by the time they are finally completed. Volkswagen is working to meet the targets of the European Union’s Green Deal. The first two factories will operate in the Swedish city of Skellefteå and in Salzgitter.