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Volkswagen revealed what the fate of the battery factory depends on, which could even be built in Hungary

Volkswagen’s battery needs will be met until 2028 by the three factories already announced in Europe – the Salzgitter plant, the Northvolt plant in Sweden, and the plant being built in Valencia, Spain – said Thomas Schmall, Chief Technology Officer and member of the Volkswagen Group’s Board of Directors.

Volkswagen continues to strive to reach 240 gigawatt-hours of battery production capacity on an annual basis to meet its own needs, but it will be able to achieve this with fewer European plants instead of the previously planned six.

We are keeping the 240 gigawatt hour plan. But whether we can achieve this with five or six plants depends on the incentives offered by each country. There is no final decision on this yet

said the technology director.

Schmall called it a misunderstanding that the announcement of the investment in the North American battery factory would mean holding back European plans. Volkswagen just wants to wait for the European response to the American inflation reduction support package IRA (Inflation Reduction Act).

The battery factory in Valencia announced last year would start production in 2026. The concern will not even need to decide on another investment until 2025, the technology director pointed out.

He added that, knowing the European response to the IRA, they could make a decision on new European locations sooner.

The fourth plant will most likely be built in an Eastern European country, or in Germany’s East Friesland or Saxony. In total, the Volkswagen concern would build up to six battery factories in Europe.

As we previously reported in detail, Hungary is also competing for the Volkswagen battery factory:

Cover image source: Sina Schuldt/picture alliance via Getty Images