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Volkswagen needs batteries that would fill 4 Gigafactories

1731 Views 12 Replies 7 Participants Last post by  saghost
Volkswagen wants to buy the world's batteries.
The German automaker said it will spend more than €50 billion ($60 billion) on battery cells as it pushes to electrify all 300 models in its range by 2030.
Volkswagen described the purchase as "one of the largest procurement" programs in automotive history, signaling it is accelerating the shift to electrified vehicles after its diesel emissions scandal.
"We have got the message and we will deliver. This is not some vague declaration of intent," said CEO Matthias Müller. "The transformation in our industry is unstoppable."
Volkswagen (VLKAY), which owns the Audi, Skoda, SEAT and Porsche brands, will continue to invest in improving its gas and diesel engines while bringing 80 new electrified models to market by 2025, including 50 purely battery-powered vehicles.
It estimates that around 25% of its new vehicles -- up to 3 million a year depending on market developments -- could be purely battery-powered in 2025.
Achieving that will require a huge number of batteries.
The German firm estimates it will need more than 150 gigawatt hours of battery capacity annually by 2025.
That's more than four times larger than the annual output of the enormous battery production "Gigafactory" that Tesla (TSLA) CEO Elon Musk has built in the Nevada desert.

Volkswagen admitted in 2015 that it had been cheating on diesel emissions tests after its vehicles in the U.S. were found to be emitting up to 40 times the legal limit on nitrogen oxide. Since then, the company has faced intense pressure to offer cleaner vehicles.
China, the world's largest car market, announced this week that it intends to ban the production and sale of vehicles powered only by fossil fuels. India, France, Britain and Norway also want to ditch gas and diesel cars.
In Germany, where the auto industry employs 800,000 people, Chancellor Angela Merkel has hinted that it's only a matter of time before the government sets its own expiration date.
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Have they been putting up the charging stations yet, like they were suppose to do as their emissions cheating fine?
Great! It is time we break the grip the petroleum industry has on the transportation industry.

And replace it with a battery industry that has its grip on the transportation industry...:rolleyes:

Most electric cars run on lithium-ion batteries, and according to Bloomberg, these account for about 40% of the vehicle’s cost (though costs are falling). A 2010 report by the Boston Consulting Group found that 75% of the cost of producing battery packs are volume-dependent, meaning that as production increases, unit costs will drop.

Invest in Panasonic Corporation (PCRFY)...BUT pay attention to CHINA...China doesn’t hide its desire to dominate several high-tech industries, including electric cars. The government encourages the use of electric vehicles (EVs) in multiple ways, and will require 8% of car sales next year to be EVs and hybrids.

China also offers subsidies to battery manufacturers, but these require a minimum 8 GWh installed production capacity in China. Only two Chinese firms, BYD COMPANY LTD ‘H’CNY1 (OTCMKTS:BYDDF) and CATL, this time...:rolleyes:

This quote in a Financial Times article sounded alarming:

“China’s approach has echoes of the one it took on solar power a decade ago. It dominated the solar industry by lowering costs and driving prices down by 70 per cent and could do the same for batteries, says Gordon Orr, former Asia chairman of McKinsey.”

China, after all, designated solar energy a “strategic emerging industry” in its 12th Five-Year Plan a few years ago, and subsidized domestic production. Chinese producers ramped up production, and may have sold solar panels below cost overseas, a practice known as dumping. This contributed to a drop in solar panel prices, and led to bankruptcy for many solar panel makers in the U.S. and Europe.
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Because this isn't a press release?
Most news one way or another...:)
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