Public Battery Procurement $48 billion

According to foreign media reports, according to the previous plan of the Volkswagen Group, it will not be a large-scale market launch of electric car products until 2019. But now VW is getting ready to ensure that the battery components are available to meet its massive production needs next year.

The German carmaker has doubled its $25 billion contract to $48 billion, after it announced it would sign a $25 billion contract for batteries.

The decision, announced at a recent meeting of shareholders, was based on a "Roadmap" production plan announced last year.

At the time, Matthew Muller, chief executive of Volkswagen, said: "In the past few months, we have tried our best to ensure the speed of implementation of this technology. When the Roadmap plan came out last fall, Volkswagen announced production of 3 million electric cars a year by 2025, with a cumulative total of 80. In 2018, nine models will be added to the list of electric or hybrid vehicles, including three pure electric vehicles.

By 2025, Volkswagen hopes to reach 3 million electric cars a year, including all brands such as Volkswagen, Audi, and Porsche.

But that doesn't mean VW will immediately spend $48 billion on battery production for electric vehicles.

At present, the global supply of dedicated automotive battery components is very limited, and it is difficult for auto manufacturers, especially start-ups, to obtain supplier protection. That's why many manufacturers are considering making their own car batteries.

The public took this into account, but eventually decided to abandon the practice. Instead, VW has chosen to enter into long-term contracts with battery makers and has encouraged them to invest more in expanding capacity to grow alongside VW's electric car business.

Although the contract is binding on some levels, it may include provisions based on advances in battery technology and significant improvements in production costs over the next 10 years.

At present, the German automaker did not disclose any specific contract details, but it is speculated that the company that cooperates with Volkswagen may be LGChem, Samsung SDI, Panasonic or CATL.

Technically speaking, Volkswagen's electric vehicle production will start from this year's Audi e-tronQuattro, and it will start to expand significantly next year. By then, there will be many I. D. Series electric vehicles entered the market.

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