Volkswagen is the world’s largest carmaker, and now it has its sights set on one of the fastest growing automakers, Tesla.
The German automaker will setup battery installation in 16 factories by the end of 2022. Volkswagen has secured $25 billion worth of batteries to build as many as 3 million electric cars by 2025.
With the powerpack deliveries secured for its two biggest markets, a deal for North America will follow shortly, Volkswagen said. In total, the Wolfsburg-based automaker has said it plans to purchase about 50 billion euros in batteries as part of its electric-car push, which includes three new models in 2018 with dozens more following.
Volkswagen’s battery plans compare to Tesla’s $17.5 billion worth of purchase obligations, primarily related to buying lithium-ion cells from Panasonic, according to a recent filing. Volkswagen called its battery tender one of the biggest purchasing initiatives in the auto industry.
As of next year, the 12-brand group will roll out a new battery-powered model “virtually every month,” Chief Executive Officer Matthias Mueller said at the company’s annual press conference. “This is how we intend to offer the largest fleet of electric vehicles in the world.”
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