Volkswagen assigns $25 billion in battery orders for electric vehicles

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Volkswagen has selected partners to provide battery cells and associated technology worth around 20 billion euros ($25 billion) for its growing electric vehicle program, including additional pressure on U.S. pioneer Tesla.

Till its “dieselgate” emissions scandal was revealed two and a half years earlier, Europe’s largest automaker had been slow to welcome electric vehicles.

But the scandal prompted a tactical shift, while advances in batteries and an international fight against contamination are raising pressure on automakers to welcome zero-emission options.

Volkswagen stated on Tuesday it had secured battery technology shipments for Europe and China, where it sells 80 percent of its vehicles, and will choose a provider for North America soon.

While Tesla’s much-anticipated Model 3 sedan has already missed some crucial production targets, Volkswagen plans to broaden assembly of zero-emission vehicles to 16 plants worldwide through the end of 2022 from three at present.

“We have pulled out all the stops during the past months to carry out the Roadmap E promptly and resolutely,” CEO Matthias Mueller stated, describing the electric vehicle program.

Emissions, new Chinese quotas for electric vehicles and strict rules on co2 (CO2) emissions in Europe are leading automakers to focus on green automobiles and self-driving technology.

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