Volkswagen is delaying plans to build a gigafactory for electric car batteries in eastern Europe after 2022 due to the economic situation and high energy prices in the region.
“Volkswagen AG and its battery company PowerCo are continuously evaluating suitable sites for their next gigafactory in Europe,” said the automaker.
“There is no pressure to act as we take some more time for decision-making in the light of current circumstances,” he said. “At present, there is no impact on planned start of construction or start of production.”
The European Union is concerned about the investment exodus to the United States of America, the incentives provided by the Inflation Reduction Act. On the other hand, energy prices in Europe reached a record high as a result of the Ukraine-Russia war.
Northvolt, the Swedish electric vehicle battery company said in October it may prioritize expanding its battery factory in the United States given Europe’s uncertain energy landscape.
“If you have the option of building a battery factory in Europe, where electricity costs 15 cents per kilowatt hour, but you can get it in China or America for 2-3 cents, we’re not in a position under stock corporation laws to say so. we will do it here out of solidarity,” Volkswagen brand head Thomas Schaefer
The east European plant will be the fourth under former CEO Herbert Diess’ plans to build six such locations with partners across Europe by the end of the decade.
Locations under consideration include the Czech Republic, Hungary, Poland, and Slovakia.
Skoda Auto, a Czech unit of Volkswagen, said in October it expected its parent to make a decision on a location by the end of 2022.
But Volkswagen’s new leader Oliver Blume is putting much of his predecessor’s legacy under the microscope, overhauling the company’s software strategy and reevaluating which factory makes which model.
It has started looking for a site for its first gigafactory outside of Europe in Canada.
