Volkswagen is staying close to EV battery makers according to Green Car Reports. It has to do so, because battery factories are skeptical about the rate of electric car take up some say. However, the car maker apparently has other ideas, since Volkswagen keeps close watch on manufacturing capacity through direct funding.
Volkswagen Keeps Close Watch Because of Shortfall
Board member Stefan Sommer speaking to Reuters said “We have not been able to build as many cars as we wanted to. Our battery supplier is not delivering the numbers we need.
“We share our thoughts with our suppliers,” he added, “so we know where to build a new plant. If nobody can meet our expectations we will build our own battery factories in China.” We understand why Volkswagen keeps close watch on battery supply. That’s because EV batteries make up half of electric car cost. Therefore their supply chain is a critical success factor that Volkswagen cannot ignore.
Volkswagen Is at Ground Zero for a Massive Push
We are inclined to agree with Green Car Report, given the emissions scandal still needling proper closure. None the less, the Volkswagen brand has a reputation for quality and we therefore would like to see it sustain.
The car maker plans to source $56 billion of batteries through to 2028 and build 22 million electric cars by then. It intends installing 400 fast-chargers along major highways in Europe by 2020, one every 75 miles, including 100 in Germany. Therefore we have no doubt Volkswagen is serious about its commitment to an EV future.
Talk on the streets holds raw material scarcity is behind the slow roll out of EV battery production. We have heard Tesla has similar concerns, as the battle for scarce resources heats up, and Volkswagen keeps close watch on its supply chain.
Related
Electric Car Battery Materials Become Scarce
Artificial Intelligence Studying New Materials
Preview Image: Volkswagen ID Concept 2017
