Volkswagen apparently joins Chinese battery company

The car maker wants to expand its commitment to electric cars in China. Volkswagen China is reportedly the largest single shareholder in Guoxuan High Tech.

The Volkswagen Group is expanding its involvement in electric cars in China and, according to a media report, is getting into a battery company directly. Volkswagen China will become the largest single shareholder of Guoxuan High Tech with 26.5 percent of the shares, the Chinese said on Thursday in a mandatory announcement to the Shenzhen stock exchange. The notification was received by the Bloomberg financial service.

A few months ago there were media reports about the possible entry. A confirmation from Volkswagen was initially not available.

China is by far the largest single market for the VW group. Batteries are considered a scarce commodity in the ramp-up of electromobility, so carmakers are trying to secure sufficient capacity in various ways.

China is seen as the leading market for electric cars because the Chinese government wants to fight the bad air in the country’s big cities and become a technology leader. Volkswagen also wants to manufacture battery cells in Europe itself, which not every car manufacturer tackles because of the high investment costs.

A production facility is being built in Salzgitter with the Swedish battery specialist Northvolt, which the works council, among others, had insisted on. Experts and companies estimate that the battery in future electric cars will account for a large part of the added value.

Author: Nabeel K

Inline Feedbacks
View all comments