German automaker Volkswagen is planning to commit circa 900 million euros ($1 billion) in the joint battery activities with Swedish Swedish battery manufacturer Northvolt AB.
As part of the financing deal, Volkswagen will initially acquire around 20 percent of the shares in Northvolt and will have one seat on the board of directors, subject to approval under antitrust legislation.
Additionally, the 50/50 joint venture (JV) intends to construct a 16 gigawatt-hours battery cell plant in Salzgitter, Lower Saxony, Germany during the course of this year.
More so, the building of the battery plant is expected to start, at the earliest, in 2020. Battery cell production for Volkswagen is slated to begin around the end of 2023 or beginning of 2024.