Ambitious Volkswagen Group electrification plan it also provides for the construction of 6 battery factories in Europe, where new “unified cells” will be produced, which will be used in all future electric models of the German group. According to the Financial Times, the German group allegedly “froze” one of his projects for the construction of a new plant in Eastern Europe.
Cause? According to reports, the decision will be connected with the desire take advantage of the Inflation Reduction Act (IRA) which, as we know, offers important perks for all auto companies looking to invest in the United States. Thus, the German group intends to support the construction of the plant in North America, given that over time it may receive nearly $10 billion in subsidies and loans from the Inflation Reduction Act and other US programs.
Car company he is waiting for a response from Europe to the Inflation Reduction Act before advancing their plans in the Old Continent. Therefore, before making a final decision, the top management of the German group is waiting for a signal from the European Union.
However, the Volkswagen Group said the decision to locate the battery plant in the US has not yet been made. In addition, he confirmed his intention to build 6 battery plants in Europe, though the right conditions are needed. That is why the Germans are waiting for the position of the leaders of the European Union.
So far, 6 Volkswagen Group battery factories have been confirmed and are located in Sweden in a joint venture with Northvolt, Salzgitter, Germany and Sagunto, near Valencia, Spain. Hungary, Poland, Slovakia and the Czech Republic competed for a plant in Eastern Europe.
That the Inflation Reduction Act can reduce investment in the battery sector and not only in Europe is unfortunately a fact. Recently a board member of Volkswagen Thomas Schmall He stressed that Europe risks losing billions of dollars of investment, given the attractive terms of the US law to reduce inflation.
In addition, in just the last few days, Transport & Environment has sounded the alarm about this, saying in a new study that 68% of Europe’s battery production capacity foreseen over the next few years is at risk precisely because of concessions, in place by the US government. For this reason, the rapid intervention of the European Union was required to create a central fund accessible to all Member States that prioritizes the electric mobility value chain.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.