Volkswagen builds first wholly owned battery production site in China to strengthen supply chains

VW Anhui

A battery system production factory in Hefei, Anhui province is being built by Volkswagen Group, the first battery system plant to be wholly owned by the German carmaker in China. 

VW Group has announced that the annual capacity of the plant will be 150,000 to 180,000 high-voltage battery systems, intended to support Volkswagen Anhui’s all- electric vehicles based on the Group’s MEB platform.  

The site will cover an area of 45,000 sq.m and be located next to Volkswagen Anhui’s production facilities. VW Anhui is Volkswagen’s first majority-owned joint venture for all-electric vehicles.  

Over €140m ($164m) will be invested in the plant and its related facilities by VW China until 2025, with production set to begin in the second half of 2023. 

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