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Volkswagen wants to build ‘a global battery champion’

Credit: Volkswagen Group

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Volkswagen announced its plans to make its battery manufacturing subsidiary, PowerCo, a “global battery champion.”

Despite Volkswagen’s arguably conservative approach to electrification in its automotive brands, its presentation regarding its battery manufacturing sub-brand PowerCo was anything but. Volkswagen has ambitious goals for the fledgling company that only started earlier this year. PowerCo aims to achieve these goals quickly “through low complexity and standardization.”

For some background, the PowerCo brand only started earlier this year when it broke ground on its first battery manufacturing facility in Germany. The sizable factory has a production capacity of 40GWh, but its real strength is in its standardization. Volkswagen has standardized its battery design (that will be used in VW Group products) and standardized the factory where the batteries will be produced, reducing construction costs and startup times, claims Volkswagen.

But standardization is only one of the advantages Volkswagen believes PowerCo holds over other battery manufacturers. Foremost, Volkswagen was quick to point out that the new company would have access to one of the world’s largest customers of lithium batteries: VW Group. The German auto giant estimates it will eventually require up to 240GWh of battery manufacturing per year.

The final advantage that Volkswagen announced was vertical integration, which it is willing to go the extra mile to achieve. Not only will PowerCo work to establish lithium refining capabilities, but the company will also establish its own lithium mines. A market that many automakers, including Tesla, have been hesitant to enter.

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After presenting these advantages, Volkswagen revealed plans for the future of PowerCo. The German battery plant (currently under construction) will enter production in 2025. Following it, the second plant in Valencia, Spain, will begin production in 2026. Thereafter, PowerCo will look to establish a standardized battery manufacturing facility in North America and then three more facilities in Europe from 2027 onward.

PowerCo will also be expanding to serve non-VW Group brands as well as non-automotive use cases, including but not limited to; maritime, energy storage, and train manufacturing customers.

To conclude, Volkswagen focused on the sustainability of the up-and-coming PowerCo. By working with Volkswagen Group brands, PowerCo will establish a circular ecosystem of batteries, hopefully reducing both waste and the cost of raw material extraction.

It is unclear how this shift to self-reliance will affect current Volkswagen battery suppliers like Northvolt. What is more evident is that battery manufacturing capabilities are becoming a significant part of many different automotive brands. It will be interesting to see how the industry reacts to the shift in the coming years.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla Semi gets new adoptee in latest sighting

Tesla is continuing to increase the number of companies that have access to the Semi.

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Credit: Tesla

The Tesla Semi looks to have its newest adoptee as US Foods, the second-largest foodservice distributor in the United States, was seen with its badging on the all-electric Class 8 truck.

US Foods trails only Sysco Corporation in terms of foodservice distributors by volume in the United States. The company joined several other massive food industry entities, such as PepsiCo, and its subsidiary, Frito-Lay, have both utilized the Tesla Semi in their fleets.

Tesla Semi futuristic sci-fi acceleration sound will never get old

The Semi in question was spotted by X user Zanegler, a prominent tracker of the Tesla Semi and its factory, which sits near the company’s Gigafactory Nevada plant in Reno:

US Foods also has a distribution center in Reno, which could have something to do with its decision to start using the Semi in regional logistics.

With an influx of EV semitrucks hitting the market from many different manufacturers, it is evident that companies are taking the idea of making their fleets more environmentally friendly very seriously.

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Tesla is still very close to unloading the Semi in a more volumized fashion, as the company’s Vice President of Vehicle Engineering, Lars Moravy, said in January:

“We just closed out the Semi factory roofing walls last week in Reno…but we’re prepping for mechanical installation of all the equipment in the coming months… The first builds of the high-volume Semi design come late this year in 2025 and begin ramping early in 2026.”

First Tesla Semi high-volume production builds expected this 2025

With the latest addition of US Foods, Tesla increases its list of companies that are planning or are already using the Semi to help with local logistics and transportation. Among them are:

  • PepsiCo
  • Walmart
  • Sysco
  • Costco
  • Martin Brower
  • Saia Inc.
  • UPS
  • Anheuser-Busch
  • DHL

Many other companies have plans to use the Semi in their fleets. Currently, Tesla appears to be hand-picking those who have access to the vehicle as the pilot program continues.

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Tesla Cybertruck takes a bump from epic failing Dodge Charger

The Cybertruck seemed unharmed by the charging Charger.

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Credit: Hammer_of_something/Reddit

There comes a time in a driver’s life when one is faced with one’s limitations. For the driver of a Dodge Charger, this time came when he lost control and crashed into a Tesla Cybertruck–an absolute epic fail. 

A video of the rather unfortunate incident was shared on the r/TeslaLounge subreddit.

Charging Charger Fails

As could be seen in the video, which was posted on the subreddit by Model Y owner u/Hammer_of_something, a group of teens in a Dodge Charger decided to do some burnouts at a Tesla Supercharger. Unfortunately, the driver of the Charger failed in his burnout or donut attempt, resulting in the mopar sedan going over a curb and bumping a charging Cybertruck.

Ironically, the Dodge Charger seemed to have been parked at a Supercharger stall before its driver decided to perform the failed stunt. This suggests that the vehicle was likely ICE-ing a charging stall before it had its epic fail moment. Amusingly enough, the subreddit member noted that the Cybertruck did not seem like it took any damage at all despite its bump. The Charger, however, seemed like it ran into some trouble after crashing into the truck.

Alleged Aftermath

As per the the r/TeslaLounge subreddit member, the Cybertruck owner came rushing out to his vehicle after the Dodge Charger crashed into it. The Model Y owner then sent over the full video of the incident, which clearly showed the Charger attempting a burnout, failing, and bumping into the Cybertruck. The Cybertruck owner likely appreciated the video, in part because it showed the driver of the Dodge Charger absolutely freaking out after the incident.

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The Cybertruck is not an impregnable vehicle, but it can take bumps pretty well thanks to its thick stainless steel body. Based on this video, it appears that the Cybertruck can even take bumps from a charging Charger, all while chilling and charging at a Supercharger. As for the teens in the Dodge, they likely had to provide a long explanation to authorities after the incident, since the cops were called to the location.

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Tesla confronts Service complaints with new AI-backed strategy

Tesla will use a new AI Agent to help expedite Service claims and improve communication with customers.

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tesla service
Credit: Tesla

Tesla is implementing a new AI-based strategy to improve service for owners. Service has routinely been among the biggest complaints of owners, although it has improved drastically over the past few years.

Some of the complaints that Tesla has received regarding its Service platform have evidently been used to develop new strategies to not only streamline the entire experience but also to make things easier for the company, which deals with many claims each week.

As a result of complaints in the past, Tesla has used various strategies to make things better for customers. However, the latest improvement comes as a result of AI, something Tesla leans on in many facets of its business.

Tesla adds ingenious solution to app to streamline Service appointments

Tesla’s AI and IT Infrastructure, Cybersecurity, and Vehicle Service head Raj Jegannathan said on X this week that the company is rolling out a new AI Agent specifically designed to handle service comms with customers.

He said the new Service AI Agent will detect delays in communications between the company and the customers, monitor the sentiment of these conversations, and auto-escalate certain claims directly to leaders.

It will also allow customers to type the word ‘Escalate’ in the message center portion of the phone app after two weeks of delays. This will help customers reach higher-ups more easily and likely will eliminate the complaints that many have had over the past few years.

The company is rolling out the AI Agent in ten pilot locations to start. Its first day being active was May 8.

Jegannathan said:

“Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!”

Service has had a lot of interesting strategies used to improve things, but it has definitely been a weak point of the Tesla ownership experience. In a perfect world, vehicles wouldn’t need repair for anything, but that is not realistic.

Instead, Tesla has worked to expedite the entire Service experience through various strategies, including F1-style service, and a goal to fix two-thirds of repair claims within the same day.

Parts availability sometimes takes this goal out of reasonableness, but these constant attempts at improving the repair experience show Tesla is doing what it can to make things better for owners.

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