The Volkswagen Group has warned that the European Union is losing the race to attract investment for the construction of battery factories against the United States, because after the approval of the Inflation Reduction Act of the Biden administration, many companies have decided to prioritize that market over ours.
The subsidies contemplated in the US law for those companies that produce batteries in North America have paid off quickly. Volkswagen itself has confirmed that it is waiting for the reaction of Brussels to decide whether to invest in the construction of a new plant in Eastern Europe.
In accordance with the provisions of the Inflation Reduction Act, battery manufacturers may receive a credit of $35 per kWh of annual capacity, a measure that has ridiculed the aid offered so far by the different members of the European Union. For this reason, the industry has asked the authorities for a prompt reply to the United States.
“Today, the battery business is led by Asian companies. And while the United States is catching up thanks to the Inflation Reduction Act, Europe is falling further and further behind. IRA terms are so attractive that Europe risks losing the race for billions in investments to be decided in the coming months and years.”it states thomas schmallmember of Volkswagen’s board of management and head of its component division.
Volkswagen plans to have a combined capacity of 240 GWh in Europe by 2030
Looking ahead to the year 2030, Volkswagen plans to have six battery gigafactories on European soil, each with a capacity of 40 GWh per year. This translates into a combined capacity of 240 GWh. The first two facilities, which will be located in salzgitter (Germany) and Sagunto (Valencia, Spain), will begin operating respectively in 2025 and 2026. Let us remember that the group aspires for 80% of its sales in the old continent to correspond to electric models by the end of the decade.
“We are still evaluating suitable locations for our next cell factories in Eastern Europe and North America. No decisions have been made yet. We stick to our plan to build factories with 240 GWh [de capacidad combinada] in Europe by 2030, but for that we need the right framework conditions«.
Source | Guardian