Volkswagen celebrated Thursday the start of operations in their first indoor battery industry, as Germany’s largest car company looks to complete the American and Chinese electric car competition.
The company plans to “direct global battery attack” at a new factory in Salzgitter in central Germany, CEO Herbert Diess told an event attended by German Chancellor Olaf Scholz.
Volkswagen has set itself the ultimate goal of becoming the world’s largest carmaker by 2025, pouring 46 billion euros ($ 46.8 billion) over the next five years.
“If Germany and Europe do not want to be left behind by the US and China, we must focus more on future technologies,” Diess said.
The Salzgitter complex, which currently has thousands of burning engines out of the factory line daily, is set to become the center of Volkswagen’s electric ecosystem.
Two billion euros are being invested in the battery industry by 2026, which is likely to produce 500,000 car batteries a year. The plan will also serve as a blueprint for battery collection in Europe.