With the turn to electric cars, cell production capacities and with it the demand for machines for them are growing rapidly.
(Photo: dpa)
Dusseldorf, Stuttgart Volkswagen and Bosch are planning a cooperation to equip battery cell factories. A declaration of intent has now been signed for this purpose, as the companies announced on Tuesday. The project is about building integrated battery production systems to support battery cell and system manufacturers with on-site ramp-up and maintenance.
By the end of 2022, 40 developers each from both groups will examine the feasibility and prepare the foundation of a joint venture. Bosch and Volkswagen want to be leaders in equipping battery cell factories. in terms of cost and technology.
So far, Asian corporations have dominated the billion dollar market. It’s not just about equipping the Volkswagen Group’s own six cell factories, but also about other car and battery manufacturers. “Manager Magazin” first reported on the new joint project.
Last November, Sebastian Wolf, battery specialist at Volkswagen, already indicated to the Handelsblatt that there was movement on the subject. “We are convinced that European plant manufacturers have the opportunity to use their know-how in the new fields and to play an important role in the development of battery cell production in Europe,” said Wolf at the time. The engineer joined Volkswagen in August from the Chinese battery cell manufacturer Farasis. There he is responsible for setting up the battery factories in Skellefteå and Salzgitter in Sweden.
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Wolf said a European supply chain with known and new players is emerging. These companies would specialize in cell manufacturing just as much as the Asian plant builders would have done. “Europe is becoming the challenger in the global battery race,” said Wolf.
Key role for Bosch
Bosch has a key role to play here: after years of testing, the automotive supplier refused to start battery cell production in 2018. It was too expensive, too risky and didn’t bring enough margin, the management judged at the time.
But electromobility is progressing faster than expected at the time. Because bottlenecks are looming and security of supply for this key component of electric cars is at risk, Volkswagen and Daimler are investing billions in their own battery factories so that they are not dependent on Asia. The car companies repeatedly put pressure on Bosch to revise the decision.
Last summer, Bosch then announced that it would at least supply manufacturing technology for others. Bosch bundled its expertise in mechanical engineering and since then has been offering companies factory equipment for battery production from a single source – from individual components and software solutions to complete assembly lines.
Webasto, known for its sunroofs and auxiliary heaters, has been a pilot customer when entering the business field. Since 2016, the Bavarians have also been building high-voltage heaters, charging solutions and battery systems for electric cars. The Swabians also gave numbers: in 2025, a total annual turnover of 250 million euros should be achieved. For the entire period up to 2025, Bosch is aiming for total sales of one billion euros in this area. If Volkswagen is now involved, it could easily become a lot more.
For Bosch, a joint venture would be a backdoor entry into battery production. The Swabians had invested several hundred million euros to explore battery entry and also have the corresponding manufacturing know-how. “We understand the ‘battery product’ and know how it has to be manufactured,” explained Bosch CEO Rolf Najork over and over again.
Volkswagen shares the financial risk
Volkswagen is obviously also interested in the knowledge of the Swabians and is now willing to share their financial risk. It cannot be ruled out that one day Bosch will also operate the factories for Volkswagen. Bosch still does not want to set up its own battery cell production within the group.
If systems from Bosch are already being used, then it is conceivable that the client will push for an even greater commitment over time. Volkswagen boss Herbert Diess, the largest customer in Europe, makes no secret of the fact that he sees the suppliers as having an obligation to manufacture battery cells – also in terms of the financial burden.
Experts from the Federal Ministry of Economics assume that the demand for lithium-ion batteries will increase from around 200 gigawatt hours (GWh) in 2019 to more than 2000 GWh by 2030. According to the Association of the German Automobile Industry, more than 60 percent is currently attributable to electromobility. Tesla alone is planning a capacity of 100 GWh for its Gigafactory in Grünheide near Berlin.
More: Car manufacturers are increasingly getting into battery cell production. The pressure is increasing for Bosch and Continental to be involved in the production of battery cells.