By Max Bernhard
Volkswagen AG (VOW.XE) and Swedish battery maker Northvolt AB plan to jointly produce lithium-ion battery cells in a new factory in Salzgitter, Lower Saxony, the German car maker's home state.
Construction of the factory is scheduled to begin next year, while start of production is planned for the end of 2023 or early 2024, Volkswagen said Friday. To that end, the two companies have created a 50-50 joint venture--a planned move that was previously announced.
The initial annual output of the factory will be 16 GWh, Volkswagen said.
Volkswagen invested about $1 billion in joint battery-production activities with Northvolt in May, which included the acquisition of a 20% stake in the company. The two said then that they plan to set up a joint venture for the battery-cell factory in Germany.
Write to Max Bernhard at firstname.lastname@example.org