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Volkswagen to build in-house battery cells in new U.S. EV facility

Volkswagen's EV Engineering & Planning Center. (Credit: Volkswagen)

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German automaker Volkswagen has announced that its first EV production facility in the United States will be located in Chattanooga, Tennessee. The facility will be an expansion of the company’s current vehicle production plant located in the landlocked U.S. state.

In a press release on August 12, Volkswagen revealed that an Engineering and Planning Center in Chattanooga would soon be built as an expansion of the currently existing manufacturing plant the company owns in Tennessee. The facility will become the home of the company’s EV development sector in the U.S.

Production will start with the ID.4 after its full-production form is revealed soon.

The company stated in its press release:

“With the all-electric Volkswagen ID.4 due to be revealed in full-production form soon, Volkswagen has begun expanding its Chattanooga factory to build a North American center for electric vehicles – not only for assembly, but for engineering the EVs of the future. To power those efforts, Volkswagen’s Engineering and Planning Center in Chattanooga will soon feature a unique, state-of-the-art high-voltage laboratory designed to develop and test electric vehicle cells and battery packs for upcoming models assembled in the United States.”

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Volkswagen’s planned EV development facility in Chattanooga, Tennessee. (Credit: Volkswagen)

Volkswagen is already building electric cars in its native Germany, and it is transforming several of its vehicle production facilities into EV manufacturing plants.

In the facility will be a battery development laboratory where the company will work to develop effective and long-lasting EV cells.

“There are two ways that auto companies approach the development of electric vehicle batteries,” Vice President of Engineering at Volkswagen of America, Wolfgang Maluche, said. “A lot of them will farm out the development and testing of batteries to another company, and some will actually do the work of developing and testing in-house. We are doing the latter.”

In-house battery development is effective for some automakers because it eliminates the need to outsource an EV’s power source from a supplier. Battery development is difficult, tedious work, and many companies working to transition to electrification have stumbled across numerous issues when working to build capable EV cells.

However, battery development is crucial to an EVs performance, especially when range is concerned. It takes a specific oxide combination to have sufficient range ratings while maintaining cell stability and a long lifespan.

Volkswagen is willing to take on the challenge of developing its own cells, and the journey to battery development will begin in Spring 2021.

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The high-voltage lab will also contribute toward the company’s wish to become carbon neutral by 2050. The lab will be built using Leadership in Energy and Environmental Design (LEED) standards, which will decrease the environmental impact the construction will have.

“This lab was planned to be as sustainable as possible,” said Maluche.

Volkswagen’s Jason Swager, who is the Director of Electrical development, is looking forward to the company’s EV development in the U.S.

“The future of driving is coming to Chattanooga. We have the chance to help shape how Volkswagen and the entire automotive industry engineers electric vehicles to be as safe and sustainable as possible,” Swager said.

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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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Tesla Insurance officially expands to new U.S. state

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

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Credit: Tesla Insurance

Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.

Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.

Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.

Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.

It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.

Tesla partners with Lemonade for new insurance program

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Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.

Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.

However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.

Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.

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Tesla Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

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Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

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“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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