By establishing the joint venture, both partners are fulfilling the agreement concluded in June on joint battery activities. Part of the approximately €900 million invested by Volkswagen will now flow into the JV. Another part went directly to Northvolt AB. In return, Volkswagen had received around 20 % of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.
Fredrik Hedlund, CEO of the new joint venture and former Chief Strategy Officer of Northvolt AB, said: "The Gigafactory in Germany, planned jointly with Volkswagen, will allow Northvolt to further production capacity for sustainably manufactured battery cells. This will have a far-reaching impact on electrification in Europe."
As part of its electrification strategy, the Volkswagen Group has an annual demand of more than 150 GWh from 2025 in Europe alone, and the same amount in Asia.
Over the next ten years, Volkswagen plans to launch almost 70 new electric models. This brings the number of e-vehicles to be built on the Group's e-platforms in the next decade to 22 million. Accordingly, Volkswagen will invest more than 30 billion euros in the electrification of its vehicle portfolio alone by 2023.