Volkswagen Begins Work on First In-House Battery Factory; Aims to Take on US, China Rivals

Volkswagen is investing EUR 2 billion (roughly Rs. 16,100 crore) in the battery plant through 2026, and aims to turn out batteries for 5 lakh vehicles a year. Volkswagen is investing EUR 2 billion (roughly Rs. 16,100 crore) in the battery plant through 2026, and aims to turn out batteries for 5 lakh vehicles a year.

Volkswagen celebrated Thursday the beginning of work on its first in-house battery factory, as the German auto giant looks to head off competition from US and Chinese electric vehicle upstarts.

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The firm plans to "steer the worldwide battery offensive" from the new plant in Salzgitter in central Germany, CEO Herbert Diess told a ceremony attended by German Chancellor Olaf Scholz.

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Volkswagen has set itself the ambitious aim of becoming the world's biggest electric car manufacturer by 2025, pouring a total of EUR 46 billion (roughly Rs. 3,69,900 crore) over the next five years into the drive.

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"If Germany and Europe don't want to be left behind by the US and China, we need to focus more on the technologies of the future," Diess said.

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The Salzgitter complex, where currently thousands of combustion engines roll off the factory line every day, is set to be the centre of Volkswagen's electric ecosystem.

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EUR 2 billion (roughly Rs. 16,100 crore) are being invested in the battery plant through 2026, with the potential for the site to turn out batteries for 5,00,000 vehicles a year.

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