Volkswagen and Northvolt form joint venture for battery production
By Jim Gibbins - 1st October 2019
Germany / Sweden - Volkswagen AG of Wolfsburg, Germany and Stockholm's Northvolt AB have created a 50/50 joint venture to build a factory for lithium-ion battery production. Construction of the facility is scheduled to start in Salzgitter (Lower Saxony) in 2020. Start of production is planned for the end of 2023/beginning of 2024. The initial annual output is to be 16 GWh.
The finalised joint venture results from an agreement which both parties concluded in June. Part of the approximately EUR900m invested by Volkswagen is now flowing into the joint venture. Another part goes directly to Northvolt. In return, Volkswagen has received about 20% of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.
