Another aspect of VW's "Roadmap E" plan will see partnerships with battery manufacturers in both China and Europe in the ongoing development of its electric I.D. range of vehicles, a contract that costs a whopping €20 billion ($24 billion) total. Volkswagen added that it is now looking for suppliers in North America.
LG Chem, Samsung and Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) will deliver batteries to VW, which has no plans to start producing powerpacks by itself, Mueller said. At least 10 major battery factories are already in the works around the globe.
The plan, previously dubbed "Roadmap E", is to produce up to 3 million electrified vehicles per year by 2025, with no fewer than 80 electrified models spread throughout its dozen-strong brand lineup, a portfolio that includes VW, Audi, Porsche and Bugatti, among others.
"This is how we intend to offer the largest fleet of electric vehicles in the world", said the company's chief executive Matthias Mueller.
Even with its push to ramp up electric vehicle production and avoid penalties from tighter environmental regulations, VW plans to rein in expenditure. But over the past months, Volkswagen's commitments have continued to grow. But he said the company would invest 34 billion euros by 2022 on autonomous and electric technology and on developing digital transportation services. Volkswagen is targeting annual production of 3 million electric vehicles by 2025.
Volkswagen will open the floodgates in 2022 and launch a new electric vehicle every month as it works aggressively to electrify its portfolio, the automaker said. Tesla is reported to have sold 102,807 electric cars in 2017, mainly high-end models. The company says that research will make EV manufacturing faster and potentially more affordable. The first model with the ID nameplate will be the Neo hatchback, which goes on sale in 2020.
Volkswagen's move represents a bold attempt to dominate the EV market, but it still faces stiff competition as carmakers move away from initial hesitancy towards EVs.
Volkswagen said Tuesday it has committed to spending billions of dollars on electric vehicle batteries, as the German automobile giant plans to aggressively boost production globally. Volvo pledged that next year all of its cars will move to electric. Ford Motor (F) will launch 13 electric models over the next several years.
And Renault-Nissan-Mitsubishi, the globe's current largest seller of EVs, said in January it wouldn't loosen its grip on that title.