Volkswagen To Construct $15.5 Billion Battery Factory In A Bid To Reposition Itself In Electric Vehicle Industry

Will Volkswagen offer Tesla a run for its cash with a planned EUR10 billion ($15.5 billion) battery factory that will reinforce its position in the electric vehicle market?

The automaker is presently dealing with a diesel emissions cheating scandal in addition to billions of dollars in penalties and civil liability claims. Amidst these problems, it appears to shift its interest from turbodiesels to battery electric cars with a substantial investment in a devoted battery factory like Tesla Motors’ Gigafactory, a German news suggests.

“Volkswagen is considering developing a multi-billion-euro battery factory as part of a major expansion of its electric-car portfolio,” reported Handelsblatt, mentioning company sources.

It included that the facility would enable Volkswagen to run individually of leading Asian battery companies such as Panasonic, Samsung and LG.

Volkswagen is yet to select whether its battery factory will be located in Germany, Eastern Asia, or Europe, however to fulfill its target sales a decade from now, the company makes sure to invest greatly on the task.

Following its formerly announced plans of being a leader in the field by 2018, the company sold just 67,000 electric cars in 2015, majority of them hybrids.