With a difficult market in Europe, VW will invest around €2bn to develop EVs in (and for) China, where the market is showing signs of recovery.
Concretely, VW will spend €1.1bn to become the largest shareholder (26%) in a Chinese manufacturer of electric batteries, Guoxuan High-Tech. To this investment is added a pour of €1bn aimed at increasing from 50% to 75% in the joint venture created with Chinese EV maker JAC Automobile.
At the annual meeting of the Chinese Parliament which ended last week, Premier Li Keqiang promised to “generalize new energy vehicles” as part of a plan to revive the Chinese economy. The push is intended to confirm China as the world’s largest e-mobility market.
China already represents 40% of VW’s sales and a significant part of their profits.
VW has recently set themselves the target of selling 1.5 million additional electric vehicles each year by 2025. In April, Volkswagen announced an agreement with the Chinese group Ganfeng to obtain lithium, a fundamental component of batteries.
