Volkswagen announced on Tuesday its plan to ramp up zero-emission and electric vehicles production by launching 16 new electric vehicle plants around the world by 2022. The automotive manufacturer will also partner with other technology manufacturers to build batteries. The total project is expected to cost 20 billion euros or approximately $25 billion.
Currently, Volkswagen only has three electric vehicle plants, signaling a large jump in plants to intensely ramp up production. The company is aiming for a goal to launch 80 new electric cars by 2025 and eventually offer an electric version of each of its 300 group models by 2030.
“Things are really moving. A change of course for the Volkswagen supertanker – full speed ahead to the future!” said CEO Matthias Müller at the Group’s Annual Media Conference in Berlin.
The company announced partnerships with battery manufacturers in Europe and China to be able to push out electric vehicle batteries effectively and efficiently, totaling approximately 20 billion euros. Volkswagen says a decision for a supplier in North America will be taken soon.
Although, according to Bloomberg, Volkswagen may ultimately buy about $60 billion in batteries for EVs with a goal to produce up to 3 million electric cars per year by 2025 in North America.
Both Europe and China are tightening up on its emission testing for its vehicles, which Volkswagen has run into legality issues regarding the matter. The company has already repaid billions in costs and fines for dodging emission level tests.
Last year in August, former Volkswagen executive Oliver Schmidt plead guilty in ties to the diesel emission scandal which resulted in a $25 billion loss for the company. Schmidt faced up to seven years in a prison along with a hefty fine for conspiring to mislead U.S. regulators.
In order to reshape the company after the scandals, Volkswagen pledged to spend 34 billion euros on EVs and autonomous driving by the end of 2022, marking it one of its largest projects.
Volkswagen also reiterates its sales revenue forecast to be up as much as 5 percent year over year and operating profit to between 6.5 and 7.5 percent, the company said in the statement.
“The results of the year 2017 demonstrate, we are actively shaping the transformation of our company. And we will not cease in our efforts in 2018.” said CFO Frank Witter.