Volkswagen Accelerates EV Plans With Battery Factory Opening In China's Hefei: Report

Automotive giant Volkswagen AG VWAGY commenced operations at its first fully owned battery pack production facility in China.

Located in Hefei, the capital of eastern China's Anhui province, the development was recently announced by the local Hefei government.

The establishment of the battery pack plant in Hefei reflects Volkswagen's commitment to expanding its electric vehicle production capabilities in the world's largest auto market, reported Reuters.

Volkswagen Anhui is set to begin mass production of electric models based on the Modular Electric Drive Matrix (MEB) platform by the end of 2023.

Volkswagen invested about 1.5 billion yuan (approximately $208.01 million) in the Hefei battery pack plant.

CEO Oliver Blume remained confident in his company’s potential to achieve the goal of a €20,000 EV by the latter half of the decade. 

In March, Volkswagen shared details about a 25,000 euro ($27,125) all-electric car under development, equipped with a 450-km range and quick charging capabilities.

VWAGY Price Action: Volkswagen shares are trading down by 2.78% at $12.87 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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