Volkswagen expects EV battery, raw material costs to total above $34bn

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Volkswagen expects EV battery, raw material costs to total above $34bn

Thomas Schmall, a management board member of Volkswagen AG, the Wolfsburg-based automotive industry giant which had sold off the highest number of passenger cars in fiscal 2018 and 2019 despite a slanderous stagnation in automotive industry even before the onset of pandemic outbreak, had told on Wednesday that VW’s plan to launch a series of European EV battery cell plants alongside securing raw materials, would heighten up the carmaker’s capital expenditure to as many as €30 billion or $34 billion, pricing an estimate on a planned expansion stratagem for the first time ever.

Aside from that, speaking in an interview with a press agency on Wednesday, VW’s head of technology, Schmall, was quoted saying that the Europe’s largest automaker would seek outside investors to fund its expansion strategy.

Volkswagen expansion to cost €30 billion

In tandem, underscoring Volkswagen AG’s feebleness to fund the project, Schmall said, “We are talking about 25 to 30 billion (euros) ...

including the vertical chain of raw materials, not only the factories. It depends on the partnership model we will establish in the next months. We're open to discuss it. For us it's necessary that we can control ... the technology roadmap, the timing, the costs and the availability to enable our rollout”.

The 57-year-old technology chief of Volkswagen AG, has been supervising the German carmaker’s ambitious plan to manufacture as many as six EV battery plants across the Europe by end-2030, an expensive move which is widely underpinned as a tactical centerpiece for VW to storm past Tesla Inc as the world’s leading e-vehicle seller.