Volkswagen Group has announced that the timeline for its battery plants in Europe to reach full capacity has been pushed back. This decision is attributed to the declining demand for electric vehicle (EV) models.
Volkswagen’s Chief Financial Officer (CFO) Arno Antlitz stated last Thursday that the German manufacturer still plans to begin production next year. However, reaching full capacity for these plants will take much longer than initially expected.
Established in 2022 with an investment of 20 billion euros, PowerCo aimed to produce 3 million EV batteries by 2030. Volkswagen’s goal was to have approximately 70% of its European sales come from electric vehicles by that year.
The slowing demand for EVs in Europe and globally has led manufacturers to reconsider their future plans. Volkswagen, particularly struggling to achieve its goals in China, has already canceled some plans. Among these cancellations is one of the PowerCo plants, which was to be built with a 2 billion euro investment.
Currently, PowerCo is actively producing at its two European facilities. Volkswagen and PowerCo’s ultimate goal is to compete with major battery manufacturers like China’s Contemporary Amperex Technology (CATL) and Korea’s LG Chem.
Despite these adjustments, CFO Arno Antlitz emphasized that the group will continue to invest in PowerCo.