Volkswagen to launch battery manufacturing facility in Anhui, China, scheduled for production by 2023.
Volkswagen Group's electrification strategy in China is gaining momentum, with the construction of a new battery factory in Hefei, China, now underway. The factory, which aims to be operational by the second half of 2023, is a significant part of the Group's commitment to expand local technological capabilities and develop vehicles and systems tailored to the Chinese market.
The new factory, wholly owned by Volkswagen Group (China), will cover more than 45,000 square meters, equivalent to 8.4 football fields. It will be adjacent to Volkswagen Anhui's production site, and will supply batteries for all-electric models produced by the company.
The battery production process at the new Hefei plant will be divided into two steps: frame production and system assembly, each with two production lines. The Group is investing more than 140 million euros in constructing the new plants and supporting facilities until 2025.
The initial annual production capacity of the plant is between 150,000 to 180,000 sets of high-voltage battery systems. This capacity will contribute to the Volkswagen Group's goal of producing more than 1 million battery systems per year in the next few years.
The factory's production process adopts the most cutting-edge technology and achieves a high degree of automation at each stage due to the digital manufacturing process. This focus on local battery production underlines Volkswagen’s investment in the entire electric vehicle ecosystem within China.
In addition to the Hefei factory, Volkswagen Group is building three battery manufacturing plants to meet the growing demand for battery systems for future MEB models in Asia, Europe, and the United States. The group's factory in Braunschweig, Germany, is a lead plant in the planning, development, and production of battery systems.
Volkswagen Group's new battery factory in Hefei is a crucial step towards entering the era of electric mobility. Dr. Stephan Wöllenstein, CEO of Volkswagen Group China, stated that the plant will help the Group to meet the growing demand for electric vehicles in China and provide dual vocational education opportunities, focusing on technical training for e-mobility products and components.
The Group is also collaborating with Chinese EV technology firms such as Xpeng, jointly developing VW brand vehicles equipped with advanced AI chips optimized for autonomous driving, which will launch in China starting in 2024. This cooperation highlights Volkswagen’s integration of cutting-edge, localized technology to enhance its electric mobility offerings in the Chinese market.
Volkswagen is launching several China-specific models, including electric concept cars from its joint ventures such as FAW-Volkswagen and SAIC Volkswagen, featuring technologies like extended range via range extenders. Additionally, Volkswagen Anhui is producing all-electric SUVs as part of this strategy, emphasizing accelerated development timelines and technologies suited for Chinese customers.
By 2023, Volkswagen planned to start sales of the ID.AERO, an all-electric sedan in China, marking a key step in expanding its ID family of electric vehicles locally. Production of the ID.AERO was set to begin in Emden with two versions planned for the Chinese market, reflecting the company’s ambition to be a leading supplier of sustainable vehicles in China.
This integrated approach positions Volkswagen to strengthen its competitiveness in China’s rapidly expanding electric vehicle market. The Group's commitment to providing dual vocational education opportunities, focusing on technical training for e-mobility products and components, will ensure a steady supply of skilled workers to support the growth of the electric vehicle industry in China.
- The new battery factory in Hefei, owned by Volkswagen Group (China), is a significant part of their commitment to the Chinese market, producing battery systems for new energy vehicles.
- The factory's annual production capacity is between 150,000 to 180,000 sets of high-voltage battery systems, contributing to Volkswagen Group's goal of producing over 1 million battery systems per year.
- In addition to the Hefei factory, Volkswagen Group is building three more battery manufacturing plants, one in Germany, to meet the global demand for battery systems for future MEB models.
- Volkswagen is also collaborating with Chinese EV technology firms, like Xpeng, to develop VW brand vehicles equipped with advanced AI chips, highlighting their integration of localized technology in the Chinese market.
