Volkswagen is reportedly examining a plan to build its own battery factory as it looks to release an onslaught of electric vehicles in the coming years.
In September, the company denied such reports, with chief executive Matthias Muller slamming the idea as “extremely expensive”. Fast forward two months and his tune has changed entirely.
Speaking to German publication Frankfurter Allgeneine Soontagszeitung, as reported by Reuters, Muller said: “If more than a quarter of our cars are to be electric vehicles in the foreseeable future, then we are going to need approximately three million batteries a year. Then it makes sense to build our own factory.”
In late September, the German company revealed its I.D. Concept as a preview of its first brand new all-electric model and the first in its future range of EVs where it hopes to sell 3 million units annually by 2025.
As evidenced by Tesla’s battery gigafactory, producing batteries in-house and in high-numbers can be an effective way of saving money over sourcing batteries from outside suppliers.