FILE Photo: A Volkswagen logo is seen on a new automobile model at the 89th Geneva Worldwide Motor Present in Geneva, Switzerland, March 5, 2019. REUTERS/Denis Balibouse

SHANGHAI (Reuters) – Volkswagen is pushing its joint undertaking companions like SK Innovation (SKI) to establish electric powered car or truck battery crops which have at least just one Gigawatt manufacturing capacity, Chief Govt Herbert Diess explained to Reuters.

“Anything underneath that volume would make minimal perception,” Diess said on the sidelines of the Shanghai Auto Display on Sunday.

Volkswagen will purchase fifty billion euros ($56.57 billion) really worth of battery cells for electric powered automobiles and has determined South Korea’s SKI, LG Chem and Samsung SDI as strategic battery cell suppliers as very well as China’s Contemporary Amperex Know-how Co Ltd (CATL).

The German automaker is retooling 16 factories to create electric cars and options to commence producing 33 diverse electric cars and trucks underneath the Skoda, Audi, VW and Seat brand names by mid 2023.

“We are thinking of an expense in a battery company in get to fortify our electrification offensive and make up the important know-how,” Volkswagen claimed.

SKI is setting up a battery cell production plant in the United States to supply Volkswagen’s plant in Chattanooga, Tennessee.

SKI will supply lithium-ion battery cells for an electric auto that Volkswagen plans to start making in Chattanooga in 2022.

LG Chem, Samsung and SKI on will also provide battery cells for Volkswagen in Europe. CATL is the automaker’s strategic spouse for China, and will supply batteries for its electrical fleet from 2019.

Reporting by Edward Taylor Enhancing by Christopher Cushing

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