VW postpones decision on eastern Europe Gigafactory

It appears that Volkswagen will take some more time to consider the right location for a proposed eastern European Gigafactory.

According to a report by Reuters, the company is still evaluating sites and sees no reason to rush the decision.

In an email, VW said:

Volkswagen AG and its battery company PowerCo are continuously evaluating suitable sites for their next gigafactory in Europe. There is no pressure to act as we take some more time for decision-making in light of current circumstances. At present, there is no impact on planned start of construction or start of production.

One significant threat to the planned plant is it even getting off the ground.

Auto production is in a strange place in Europe, with rising energy costs and supply chain issues still plaguing much of the continent.

Northvolt has already noted it will be prioritizing expanding to the United States.

VW, for its case, noted it is hard to justify building in Europe at the moment.

VW’s brand chief said this earlier this week:

If you have the option of building a battery plant in Europe, where electricity costs 15 cents per kilowatt hour, but you can get it in China or America for 2-3 cents, we are not in a position under stock corporation law to say we will do it here out of solidarity.

Auto and battery production in the EU has become a politically hot topic, and VW’s non-commital nature is not easing things.

While VW is postponing their decision on a new European gigafactory, the automaker is moving forward with plans for the first gigafactory outside of Europe, and it looks like Canada could be the recipient of that new facility.

Volkswagen strengthens its EV battery supply with $20 billion investment

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