Volkswagen Invests In Northvolt Ab

June 13, 2019 by Volkswagen

•Volkswagen to invest some €900 million in joint battery activities with Northvolt AB

•Volkswagen is initially acquiring about 20 percent of the shares in the Swedish battery cell producer

•Furthermore, Volkswagen plans to stablish a 50/50 joint venture during the course of this year to set up a battery cell factory with an initial capacity of 16 GWh

•Volkswagen AG Board Member for Procurement, Stefan Sommer: 'With Northvolt we have found a European partner to join us in advancing battery cell production here in Germany.'

Wolfsburg (Germany), Stockholm (Sweden), June 12, 2019. Volkswagen AG is investing some €900 million in joint battery activities with Northvolt AB. Part of the sum is intended for a joint venture with the Swedish battery cell producer, a further share will go directly to Northvolt AB. In return, Volkswagen will acquire about 20 percent of the shares in Northvolt AB and will have one seat on the Board of Directors, subject to approval under antitrust legislation. Furthermore, a 50/50 joint venture to build a 16 GWh battery cell factory in Europe is planned during the course of this year. It is intended to locate the factory in Lower Saxony (Salzgitter) if the preconditions for this are fulfilled. Construction of the production facility is scheduled to start, at the earliest, in 2020. Battery cell production for Volkswagen is slated to commence around the end of 2023/beginning of 2024.

Dr. Stefan Sommer, Member of the Volkswagen AG Board of Management responsible for Procurement, commented: 'Volkswagen is laying the groundwork at all levels for the successful implementation of its electrification strategy. With Northvolt, we have now also found a European partner whose know-how and sustainable, CO2-optimized battery cell production processes will enable us to advance cell production here in Germany. The prerequisite for this is, of course, the creation of the necessary economic framework.'

Under its electrification strategy, the Volkswagen Group's annual capacity requirements in Europe alone from 2025 are in excess of 150 GWh – demand on a similar scale is expected in Asia.

Northvolt is a European supplier of sustainable, high-quality battery cells and systems. The company is currently setting up pilot production of battery cells and a battery cell production

facility with an initial capacity of 16 GWh in Sweden. Founded in 2016 to enable the European transition to a decarbonized future, the company has made swift progress on its mission to deliver the world's greenest lithium-ion battery with a minimal CO2 footprint and the highest ambitions for recycling. Apart from Volkswagen AG, Northvolt's industrial partners and customers include Scania, ABB, BMW, Siemens, Vattenfall and Vestas.

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For more information, please visit northvolt.com.