Volkswagen Group and Bosch have signed a memorandum of understanding (MoU) to explore the establishment of a European battery equipment solution provider. The companies aim to supply the entire range of processes and components needed for the large-scale manufacture of EV battery cells and systems.
The joint venture will draw on complementary areas of expertise, with the common goal to achieve cost and technology leadership in equipping cell production factories in Europe.
Volkswagen and Bosch have formed the project unit with the target of preparing the establishment of the new company by the end of 2022.
Thomas Schmall, Member of the Board of Management of Volkswagen Group in charge of Technology and CEO of Volkswagen Group Components, says: “Europe has the unique chance to become a global battery powerhouse in the years to come. There is a strong and growing demand for all aspects of battery production, including the equipment of new gigafactories. Volkswagen and Bosch will explore opportunities to develop and shape this novel, multibillion-euro industry in Europe. Our decision to actively engage in the vertical integration of the battery-making value chain will tap considerable new profit pools. Setting out to establish a fully localized European supply chain for e-mobility made in Europe certainly marks a rare opportunity in business history.”
Rolf Najork, Member of the Board of Management of Robert Bosch Group and Chairman of the Executive Board of Bosch Rexroth, adds: “Together with Volkswagen, we seek a path to industrialize production processes for battery cells with standardized equipment. We have the best prerequisites for this: Bosch is not only the world’s biggest automotive supplier, but also one of the leading suppliers of factory equipment. We understand how battery technology works, and know-how to manufacture it. With more than 135 years of automotive experience and our proven industrialization expertise, we want to serve the growing demand for batteries. European industry has the potential to become a technology driver for the ecological transformation of the economy.”
In Europe alone, the Volkswagen Group plans to build six cell factories by 2030.
