Volkswagen Group China builds battery systems factory in Anhui to strengthen BEV value chain


The new factory, VW Anhui Components Company, will be located in the supplier park near the Volkswagen Anhui electric vehicle production site, bringing logistics and cost efficiency and faster time to market.

Volkswagen Group China invests more than 140 million euros until 2025 in the new plant and its facilities

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Volkswagen Group China invests more than 140 million euros until 2025 in the new plant and its facilities

Volkswagen Group China begins construction of a battery system production plant in Hefei (Anhui province). VW Anhui Components Company is the first 100% Group-owned battery systems factory in China. Its initial annual capacity will be 150,000 to 180,000 high-voltage battery systems for Volkswagen Anhui’s all-electric vehicles based on the group’s modular electric driving toolkit (MEB platform). Covering an area of ​​over 45,000 square meters, the plant will be located next to the production facilities of Volkswagen Anhui, Volkswagen’s first majority-owned joint venture for all-electric vehicles. Volkswagen Group China is investing more than 140 million euros until 2025 in the new plant and its facilities, with the start of production (SOP) scheduled for the second half of 2023.

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Dr. Stephan Wollenstein, CEO of Volkswagen Group China, said: “The Volkswagen Group platform strategy is a competitive advantage that we are transferring into the era of electric mobility. With a significant increase in the number of battery electric vehicles (BEVs) in the future, we need to focus on keeping key components such as battery systems in our own value chain, which allows us to leverage group-wide synergies and innovations. Volkswagen Anhui and VW Anhui Components Company, alongside our two strong joint ventures, are essential to our electrification strategy and to achieving our goal of seeing the Volkswagen Group fleet in China reach over 40% NEV by 2030 .

The new factory, VW Anhui Components Company, will be located in the supplier park near the Volkswagen Anhui electric vehicle production site, bringing logistics and cost efficiency and faster time to market. The new premises cover more than 45,000 square meters, which is equivalent to 8.4 football pitches. As of the SOP, approximately 200 employees will work in the new plant. The new plant will take advantage of existing synergies with the battery factories and workshops wholly owned by the Group in Braunschweig (Germany) and Tianjin (China), and will strengthen links and synergies with the MEB battery factories of the Chinese joint ventures of the Volkswagen Group.

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VW Anhui Components Company is the first 100% Group-owned battery systems factory in China.

The Braunschweig plant is considered the main plant for the planning, development and production of battery systems. German experts are providing support to international facilities being set up, including in Anhui. The experience acquired in the Braunschweig plant, which has been operating since 2019, is thus transferred to the entire Volkswagen group. In addition to the experts working on site, there are also teams working from Germany as bridgeheads of the collaboration. Along with Anhui, battery assembly capacities are also being set up in the Czech Republic (Mlada Boleslav) and in the USA (Chattanooga). The goal is to manufacture more than a million battery systems per year in a few years.

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Employees will be trained at the Component Education Academy at the Group’s factory in Tianjin, with frontline employees also receiving state-of-the-art VR training to eliminate the risk of lost parts and accidents, shorten the training cycle and reduce the need for physical sites. . The Group is committed to the younger generations and will offer work-based vocational training opportunities, focusing on technological training for e-mobility products and components. This is in line with the Group’s recent cooperation with local partners in Anhui to cultivate high-quality local talent that will contribute to the Group’s activities, as well as with Hefei as a mobility hub.

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The battery system for MEB vehicles consists of several cell modules, a cell management controller, a battery management system and a connector strip, which are interconnected via high voltage connectors and protected in an aluminum battery box. In terms of the manufacturing process, there will be two production stages each with two production lines – one for the production of frames and one for the assembly of the system. In line with the Group’s vision for a digitized manufacturing process, the production, assembly and testing of battery systems will use state-of-the-art technology and involve a high level of automation at every step. The production of prototypes has already started at the Group’s factory in Tianjin.

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