Volkswagen Group China Launches Battery System Plant in Eastern Province of Anhui

Volkswagen Group (China) published an article to its official website on Thursday, announcing that the company’s battery system factory in Hefei, Anhui Province, has officially started construction.

This factory is the first battery system production facility wholly owned by Volkswagen Group in China, with an initial annual production capacity of 150,000-180,000 sets of high-voltage battery systems.

(Battery Assembly Factory in Hefei. Source: Volkswagen China)

Volkswagen China said that all the batteries produced by the factory will be used for pure electric vehicles made by the Volkswagen Anhui MEB factory.

The new battery system factory is adjacent to the Volkswagen Anhui MEB factory and will cover an area of over 45,000 square meters. This site will help Volkswagen Group improve logistics efficiency, reduce costs and speed up the launch of electric vehicle products.

Volkswagen China plans to invest more than 140 million euros ($164.289 million) in the construction of the new factory and supporting facilities by 2025. The factory will carry out production in the second half of 2023.

Stephan Wöllenstein, CEO of Volkswagen Group China, said that the strategic layout of joint ventures and batteries in China is very important for Volkswagen Group’s electrification strategy. According to Volkswagen China’s plan, by 2030, new energy vehicles will account for more than 40% of the models launched by its brands in China.

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At present, Volkswagen Group is building three battery manufacturing plants in Asia, Europe and the United States to meet the increasing demand for battery systems used to power future MEB models.

According to Chinese state media outlet People’s Daily, Anhui Province is one of the provinces where the new energy automobile industry started earliest in China. After more than ten years of development, Anhui’s new energy electric vehicle production and R&D enterprises, as well as enterprises focused on the three main components – batteries electric driving technology and electric controls – have grown rapidly. At present, Volkswagen Group, NIO Inc. and many other carmakers have set up factories in Anhui.