Volkswagen EV battery gigafactory plans on hold due to slowing demand for electric vehicles in Europe

Volkswagen EV battery gigafactory plans on hold due to slowing demand for electric vehicles in Europe

Volkswagen Group battery cell development facility, Salzgitter

The Volkswagen Group is holding off of making a decision for a new battery manufacturing site for the time being as demand for electric vehicles in Europe is below expectations, Volkswagen Group CEO Oliver Blume said according to Reuters.

The manufacturer had been searching for a possible site for its EV battery factory in eastern Europe, and had already put off a decision one year ago when it was considering locations in the Czech Republic, Hungary, Poland and Slovakia, and Volkswagen said earlier that it was in ‘no rush’ to make a decision, according to the report.

Not everyone has the time, however, as Reuters reported that Czech officials said this week that they would start offering their proposed site for Volkswagen’s battery plant to other investors, saying that they could not wait any longer for a decision.

Volkswagen EV battery gigafactory plans on hold due to slowing demand for electric vehicles in Europe

Volkswagen ID.3 facelift

Czech prime minister Petr Fiala said the country will begin concentrating on other projects. “We cannot continue to hold the land for the project,” Fiala was quoted as saying. Meanwhile, industry minister Josef Sikela said talks were underway with five investors, and two of those projects being discussed are on a similar scale to that of Volkswagen’s plans, Reuters wrote.

Volkswagen had already chosen sites in Salzgitter in Germany, Valencia in Spain, and St Thomas in Canada, which collectively have a production potential of 200 GWh per year, the car manufacturer said. “Based on market conditions, including the sluggish ramp up of the BEV market in Europe… there is for the time being no business rationale for deciding on further sites,” Blume said in a statement.

The Volkswagen Group CEO had met with Czech Republic officials this week as the country pushed for the investment in its bid to secure the future of its automotive sector while the automotive industry moves away from fossil fuels, the report added.

Looking to sell your car? Sell it with myTukar.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.



  • 4GR-FSE on Nov 02, 2023 at 4:56 pm

    I always think BEV is just a hype..
    If you want to look at how cars will evolve in the future, you just look at what Toyota is doing.. Toyota is enjoying an impressive Q2 results with increase in Hybrid demand while they still diversify their drivetrain with BEV, Hydrogen and development of solid state battery.
    Look at how the Germans got so screwed up with the diesel gate and try to go all out with BEV. While Toyota stayed true with Hybrids all along..

    Like or Dislike: Thumb up 12 Thumb down 2
  • Peppa on Nov 02, 2023 at 6:31 pm

    VW in general are too expensive own and to maintain. As a china hater myself i must admit the chinese did way better job in ev

    Like or Dislike: Thumb up 5 Thumb down 2
    • Blinken on Nov 11, 2023 at 12:12 am

      VW is actually cheap to maintain in it’s home country. Toyota is way more expensive to maintain there.
      While intervals including oil change are at 30.000km, Toyota still has 10.000km intervals.

      Like or Dislike: Thumb up 0 Thumb down 0

Add a comment