Volkswagen Group and Bosch Group are exploring the prospects of opening a business to provide battery manufacturing solutions in Europe, Kallanish learns from the German companies.

They have formed a project unit, with plans to prepare the establishment of a new company by year-end. The preliminary idea is to supply integrated battery production systems, as well as on-site ramp-up and maintenance support for battery cell and system manufacturers.

Volkswagen itself plans to build six battery gigafactories in Europe by 2030, with an estimated combined capacity of 240 gigawatt-hours. But the companies are targeting the “enormous demand” in Europe, which they estimate to be at around 700 GWh by the end of the decade.

The carmaker is seeking a path to industrialise production processes for battery cells with standardised equipment. Bosch, as the world’s biggest automotive supplier and a leading supplier of factory equipment, has all the prerequisites to help achieve that, says Rolf Najork, management board member of Robert Bosch Group.

“Europe has the unique chance to become a global battery powerhouse in the years to come,” comments Volkswagen Group Components ceo Thomas Schmall in a statement. “Our decision to actively engage in the vertical integration of the battery-making value chain will table considerable new profit pools. Setting out to establish a fully localised European supply chain for e-mobility made in Europe certainly marks a rare opportunity in business history.”

Last month, the carmaker set up a new European company to handle its battery-related activities – which will be in charge of processing raw materials, developing a unified VW battery to volume segment and manage its gigafactories. The separate company will oversee €52 billion ($58.9 billion) in new EV investment over the next five years.