Volkswagen Group battery cell development facility, Salzgitter
The Volkswagen Group is holding off of making a decision for a new battery manufacturing site for the time being as demand for electric vehicles in Europe is below expectations, Volkswagen Group CEO Oliver Blume said according to Reuters.
The manufacturer had been searching for a possible site for its EV battery factory in eastern Europe, and had already put off a decision one year ago when it was considering locations in the Czech Republic, Hungary, Poland and Slovakia, and Volkswagen said earlier that it was in ‘no rush’ to make a decision, according to the report.
Not everyone has the time, however, as Reuters reported that Czech officials said this week that they would start offering their proposed site for Volkswagen’s battery plant to other investors, saying that they could not wait any longer for a decision.
Czech prime minister Petr Fiala said the country will begin concentrating on other projects. “We cannot continue to hold the land for the project,” Fiala was quoted as saying. Meanwhile, industry minister Josef Sikela said talks were underway with five investors, and two of those projects being discussed are on a similar scale to that of Volkswagen’s plans, Reuters wrote.
Volkswagen had already chosen sites in Salzgitter in Germany, Valencia in Spain, and St Thomas in Canada, which collectively have a production potential of 200 GWh per year, the car manufacturer said. “Based on market conditions, including the sluggish ramp up of the BEV market in Europe… there is for the time being no business rationale for deciding on further sites,” Blume said in a statement.
The Volkswagen Group CEO had met with Czech Republic officials this week as the country pushed for the investment in its bid to secure the future of its automotive sector while the automotive industry moves away from fossil fuels, the report added.
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