Volkswagen Throws Race With Tesla Into High Gear At EV Battery Event

Volkswagen AG VWAGY outlined its battery and charging technology plans through 2030 at a "Power Day" event Monday. 

What Happened: During the virtual event, Volkswagen laid out a roadmap to create electric vehicles that are affordable and efficient by reducing the complexity of EV batteries.

Mirroring Tesla Inc TSLA, which held a Battery Day event in September, Volkswagen also used its event to intrigue investors and to cement its place as a front-runner in the race to catch its larger EV competitor.

“E-mobility has become core business for us. We are now systematically integrating additional stages in the value chain. We secure a long-term pole position in the race for the best battery and best customer experience in the age of zero emission mobility,” Herbert Diess, VW's chairman of the board, said in a press release.

Why It Matters: Volkswagen said it's developing a new unified cell battery for a 2023 launch that will reduce battery costs by up to 50%.

The German automaker also plans to expand its partnerships in the electric energy sector, with companies such as BP PLC BP, to operate 18,000 fast-charging stations across Europe by the end of 2025 and 3,500 in North America by the end of this year.

The battery charging stations will have a capacity of 150 kW, which will allow drivers to charge their EVs quickly, making vehicles more practical and energy efficient.

Volkswagen also unveiled its plans to build six gigafactories to produce battery cells by 2030 and a $14-billion order with Swedish battery manufacturer Northvolt, which will supply Volkswagen’s battery cells for the next 10 years.

Tesla now operates three gigafactories and plans to open two more. 

VWAGY Price Action: Volkswagen shares were trading 11.48% higher at $33.18 at last check Tuesday. 

Photo courtesy of Volkswagen. 

Market News and Data brought to you by Benzinga APIs
Posted In: NewsEurozoneEventsMarketsMoversTechTrading Ideaselectric vehiclesEVs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!