Volkswagen teams up with Bosch on battery production

Volkswagen has partnered up with Bosch to help boost the manufacturer’s battery production.

The pair, who have signed a memorandum of understanding, plan to upscale battery production to help progress towards ‘carbon-neutral mobility’. It’s part of Volkswagen Group’s expansion plan which will see it build six battery cell factories by 2030.

Both Volkswagen Group and Bosch will use their partnership to explore how industrial-scale battery manufacturing can be streamlined in Europe. Volkswagen estimates that various companies plan to build cell factories with a total yearly capacity of around 700 gigawatt-hours by 2030 in Europe alone.

Thomas Schmall, member of the board of management of Volkswagen Group in charge of technology, 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.”

The pair aim to form a new company by the end of 2022. Bosch opened a semiconductor factory in Dresden last year, while Volkswagen also announced a collaboration with battery maker Northvolt with the aim of creating a 16GWh battery production facility by 2024.

Rolf Najork, member of the board of management of Robert Bosch Group and chairman of the executive board of Bosch Rexroth, said: “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.”