FRANKFURT, Germany (AP) — Volkswagen says it is taking a stake in Swedish battery cell producer Northvolt AB and plans a joint factory in Germany ahead of increased production of electric vehicles next year.

Wolfsburg-based Volkswagen said Wednesday that it would invest around 900 million euros ($1 billion) in joint battery activities with Northvolt that include acquiring an initial 20 percent in Northvolt.

Volkswagen plans to step up production and sales of E-cars next year with its forthcoming ID. 3 compact.

VW said it planned a 50-50 joint venture to build a battery cell factory in Salzgitter in its home region of Lower Saxony, whose government is a stakeholder in Volkswagen.

Plant construction would start in 2020 at the earliest and production for VW would commence at the end of 2023 or the beginning of 2024.

VW's investment is part of a capital raise by Northvolt that includes $1 billion in equity capital alongside additional debt financing from the European Investment bank and other lenders. The new financing will enable establishment of a lithium-ion battery factory in Skelleftea, Sweden, Northvolt said.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.

Thank you for Reading!

Please log in, or sign up for a new account and purchase a subscription to read or post comments.