VOW Volkswagen AG

By Kim Richters

Volkswagen AG said Thursday that it is bundling its global battery operations under the roof of newly launched company PowerCo, which will manage the car maker's activities across the entire battery value chain.

The German car maker said the subsidiary has to potential to generate annual sales of more than 20 billion euros ($20.37 billion) and will have up to 20,000 employees across Europe.

"Up to 2030, PowerCo is to invest more than EUR20 billion together with partners in the development of the business area," Volkswagen said.

The auto maker on Thursday broke ground for its first battery-cell factory in Salzgitter, Germany, where production for the electric-vehicle components will start in 2025. The next factory will be built in Valencia, Spain.

"The battery cell business is one of the cornerstones of our new auto strategy which will make Volkswagen a leading provider of the sustainable, software-driven mobility of tomorrow," Volkswagen Chief Executive Herbert Diess said.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

July 07, 2022 09:42 ET (13:42 GMT)

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