German Volkswagen automaker is planning on investing around $193 billion over the next five years in fields like battery production, it said on Tuesday. The investment is with the goal to decrease spending on combustion engines by 2025.
The company is working toward a target of selling 50 percent of electric vehicles (EV) around the world by 2030. Currently, over two-thirds of the five year investment budget is targeting electrification and digitalisation, up from 56 percent in its five year plan released a year ago.
In the new plan, €15 billion are going to be spent on battery plants and raw materials, while €2 billion will be spent on a plant in North Carolina for its Scout brand.
According to Reuters, the company said that there is a plan to increase investment in combustion engine technology by 2025 and to decline from the on. The company has more ambitious electrification targets than some other companies.
The investment decisions have a target of fulfilling 10-point plan developed by Chief Executive Oliver Blume after he started serving in his position.
According to Reuters the company is expected to share its virtual equity story result set in motion by Blume.
All of the company’s different brands such as Audi and Bentley are now preparing for a listing as an exercise with the goal of becoming more attractive to capital markets.
Volkswagen announced on Monday that its first battery cell plant outside Europe will be in Canada, with the goal of starting production in 2027.