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Volkswagen’s Power Day: Six new cell plants, new unified battery cell, charging network partnerships

(Credit: @Volkswagen/Twitter)

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Earlier today, German automaker Volkswagen held its first-ever “Power Day” event. Similar to Tesla’s Battery Day, Volkswagen outlined its plans for reducing the cost of electric vehicles, how it will supply battery cells for its massive EV push, a new “unified” battery cell, and the how company’s charging network is being funded by BP and other European-based energy companies.

Batteries and Cell Production

Every company involved with electric vehicles knows that to reduce the cost of its cars, sourcing batteries is 9/10ths of the battle. Batteries make up a substantial portion of an electric vehicle’s overall cost. With increased battery production and purchasing, EV makers hold the ability to lower the cost of their vehicles overall. Tesla outlined this last September at its own battery-focused event.

Volkswagen’s roadmap isn’t much different than Tesla’s. The company plans to increase cell production in Europe by a substantial margin, developing six new cell factories that will be fully operational by 2030.

“Together with partners, we want to have a total of six cell factories up and running in Europe by 2030, thus guaranteeing security of supply,” Thomas Schmall, Member of the Board of Management of Volkswagen Group for Technology and CEO of VW Group Components, said. The six new factories will produce cells with a total energy value of 240 GWh per year by the time they are finished. Two of the factories will operate in Sweden, with one in Skellefteå and another in Salzgitter. The Salzgitter factory will produce cells for VW’s “high-volume segment” starting in 2025 and will have up to 40 GWh per year of capacity.

Additionally, the company said that it “has decided to refocus the previous plan in relation to cell production and concentrate production of its premium cells in the Swedish gigafactory “Northvolt Ett” in Skellefteå in collaboration with Northvolt.” This factory will begin producing cells in 2023 and will be expanded to a final annual capacity of 40 GWh.

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Credit: Volkswagen

New Unified Battery Cell in 2023

Volkswagen’s plan to reduce costs is funneled through battery developments and improvements. Schmall outlined this with the idea of new, more cost-effective cells that will increase range and performance.  “This will finally make e-mobility affordable and the dominant drive technology,” Schmall said.

While Volkswagen plans to purchase cells from suppliers, it also plans to create cells in-house within a series of battery production facilities. In 2023, a new, unified cell will be launched and installed in 80% of the Volkswagen group’s electric vehicles. “We will use our economies of scale to the benefit of our customers when it comes to the battery too. On average, we will drive down the cost of battery systems to significantly below €100 per kilowatt-hour,” Schmall added.

“Integration of the Value Chain”

In an attempt to secure the long-term supply of its battery cells to alleviate any concerns over its transition to electromobility, Volkswagen says it will focus on partnerships with selected strategic partners. “The new prismatic unified cell also offers the best conditions for the transition to the solid state cell – the next quantum leap in battery technology, which Volkswagen anticipates for the middle of the decade. The Group focuses consistently on strategic partnerships and efficient use of resources both for batteries and for charging,” VW said. Additionally, the VW Group said it will adhere to its strategic financial targets and will continue to aim for a 6% CAPEX ratio by 2025. It also plans to have a net cash flow of more than €10 billion in its core automotive business.

Charging Network fueled by partnerships with BP, Iberdrola, Enel

Volkswagen isn’t only working on its battery plans. The company also is working on expanding its charging platform by calling upon European power companies to help with the rollout. Partnerships with IONITY and BP will establish 8,000 new charging points throughout Europe. Additionally, 4,000 150 kW chargers will be installed at BP and ARAL service stations in Germany and Great Britain. Spain-based Iberdrola will assist Volkswagen with main traffic route coverage in Spain, and Italian company Enel will help with main and urban motorways in Italy.

Volkswagen says its total investment package for the charging infrastructure will cost around  €400 million by 2025 and is looking for other companies to partner with.

In North America, 3,500 fast-charging points will be installed by Electrify America by the end of the year. In China, 17,000 will be installed as well.

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Credit: Volkswagen

Planned V2G Capability

While Volkswagen says it intends to “integrate the electric car in private, commercial and public energy systems in the future,” it says that vehicles using the MEB platform will support energy storage capabilities starting in 2022. Bidirectional wall boxes to energy management systems will be developed as well, allowing owners to supply power to residential buildings, businesses, or the general power grid when needed.

Volkswagen’s full Power Day event is available below.

https://www.youtube.com/watch?v=vdnRfNwj1Fg

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Cybertruck

Tesla made a change to the Cybertruck and nobody noticed

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Credit: diagnosticdennis/Instagram and @smile__no via Tesla Owners of Santa Clarita Valley/X

Tesla made a change to the Cybertruck, and nobody noticed. But to be fair, nobody could have, but it was revealed by the program’s lead engineer that it was aimed toward simplifying manufacturing through a minor change in casting.

After the Cybertruck was given a Top Safety Pick+ award by the Insurance Institute for Highway Safety (IIHS), for its reputation as the safest pickup on the market, some wondered what had changed about the vehicle.

Tesla Cybertruck earns IIHS Top Safety Pick+ award

Tesla makes changes to its vehicles routinely through Over-the-Air software updates, but aesthetic changes are relatively rare. Vehicles go through refreshes every few years, as the Model 3 and Model Y did earlier this year. However, the Cybertruck is one of the vehicles that has not changed much since its launch in late 2023, but it has gone through some minor changes.

Most recently, Wes Morrill, the Cybertruck program’s Lead Engineer, stated that the company had made a minor change to the casting of the all-electric pickup for manufacturing purposes. This change took place in April:

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The change is among the most subtle that can be made, but it makes a massive difference in manufacturing efficiency, build quality, and scalability.

Morrill revealed Tesla’s internal testing showed no difference in crash testing results performed by the IIHS.

The 2025 Cybertruck received stellar ratings in each of the required testing scenarios and categories. The Top Safety Pick+ award is only given if it excels in rigorous crash tests. This requires ‘Good’ ratings in updated small and moderate overlap front, side, roof, and head restraints.

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Additionally, it must have advanced front crash prevention in both day and night. Most importantly, the vehicle must have a ‘Good’ or ‘Acceptable’ headlights standard on all trims, with the “+ ” specifically demanding the toughest new updated moderate overlap test that checks rear-seat passenger protection alongside driver safety.

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Tesla enters interesting situation with Full Self-Driving in California

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tesla model x
A Tesla Motors Inc Model X is seen at Tesla's introduction of its new battery swapping program in Hawthorne, California June 20, 2013. Tesla Motors Inc on Thursday unveiled a system to swap battery packs in its electric cars in about 90 seconds, a service Chief Executive Elon Musk said will help overcome fears about their driving range. REUTERS/Lucy Nicholson (UNITED STATES - Tags: TRANSPORT BUSINESS LOGO) - RTX10VSH

Tesla has entered an interesting situation with its Full Self-Driving suite in California, as the State’s Department of Motor Vehicles had adopted an order for a suspension of the company’s sales license, but it immediately put it on hold.

The company has been granted a reprieve as the DMV is giving Tesla an opportunity to “remedy the situation.” After the suspension was recommended for 30 days as a penalty, the DMV said it would give Tesla 90 days to allow the company to come into compliance.

The DMV is accusing Tesla of misleading consumers by using words like Autopilot and Full Self-Driving on its advanced driver assistance (ADAS) features.

The State’s DMV Director, Steve Gordon, said that he hoped “Tesla will find a way to get these misleading statements corrected.” However, Tesla responded to the story on Tuesday, stating that this was a “consumer protection” order for the company using the term Autopilot.

It said “not one single customer came forward to say there’s a problem.” It added that “sales in California will continue uninterrupted.”

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Tesla has used the terms Autopilot and Full Self-Driving for years, but has added the term “(Supervised)” to the end of the FSD suite, hoping to remedy some of the potential issues that regulators in various areas might have with the labeling of the program.

It might not be too long before Tesla stops catching flak for using the Full Self-Driving name to describe its platform.

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Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

The Robotaxi suite has continued to improve, and this week, vehicles were spotted in Austin without any occupants. CEO Elon Musk would later confirm that Tesla had started testing driverless rides in Austin, hoping to launch rides without any supervision by the end of the year.

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Investor's Corner

Tesla stock closes at all-time high on heels of Robotaxi progress

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Credit: Tesla

Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.

The price beats the previous record close, which was $479.86.

Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.

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This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.

Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.

Shares closed up $14.57 today, up over 3 percent.

The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.

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However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.

Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.

Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.

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