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    Volkswagen and Bosch look to industrialise manufacturing processes for battery cells for electric vehicles (EVs)

    The Volkswagen Group and the Bosch Group have signed a memorandum of understanding to explore the establishment of a European battery equipment solution provider.

    The two companies plan to supply integrated battery production systems as well as on-site ramp-up and maintenance support for battery cell and system manufacturers.

    The companies are aiming for cost and technology leadership in the industrialisation of battery technology and the volume production of sustainable, cutting-edge batteries.

    Through the “local for local” production approach, this will also be a step towards the objective of carbon-neutral mobility. In Europe alone, the Volkswagen Group plans to build six cell factories by 2030.

    The companies aim to supply the entire range of processes and components needed for the large-scale manufacture of battery cells and systems for electric vehicles (EVs).

    The industry-wide demand is enormous, especially as the demand for electric cars continues to rise at a rapid rate.  For both partners, this alliance is a further step towards playing leading roles in the world of emobility.

    Thomas Schmall, member of the board of management Volkswagen AG Technology and CEO of Volkswagen Group Components, 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, multi-billion 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 emobility made in Europe certainly marks a rare opportunity in business history.”

    Volkswagen and Bosch have formed the project unit with the target of preparing the establishment of the new company by the end of 2022.

    Rolf Najork, President and CEO 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.”

    Ian Osborne
    Ian Osborne
    Editor-in-Chief at ElectricDrives

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