The transition would not be that cheap following Volkswagen‘s declaration to manufacture six battery plants across Europe before the end of this decade. Bloomberg estimates that the whole project might cost approximately $29 billion. Currently, Volkswagen is planning on investments as a unifying strategy towards its battery production plans and recycling valuable metals.
Herbert Diess, Chief Executive Officer of Volkswagen, said that it is a reality that e-mobility has grabbed the trophy, which is the only solution towards the reduction of transport emissions. During the Power Day event, Volkswagen displayed its massive strategies to surpass Tesla Inc. and carry the tag of the largest manufacturer of electric vehicles in the world. During the event, the main agenda revolved around -lithium-ion batteries rather than discussing vital concerns like vehicles, designs of the company’s EVs, or customer services.
Batteries cover up to 30 percent of electric vehicle costs. That means that any vehicle manufacturing industry should have in mind that it is not about purchasing batteries at a lower price but getting the best supplier for enough stock to meet the high battery demand.
Volkswagen has a long way to go because the race to beat Tesla would not be that easy. Tesla always has its strategies implemented to keep a substantial electric vehicle leadership on the forefront.
Venkat Viswanathan, an associate professor at Carnegie Mellon University and an expert in electric vehicles, stated that Tesla contains drivetrains, including batteries and electric cars. The technology used to make Tesla vehicles is four to five years ahead of the race. Tesla has the highest driving range for a similar capacity of batteries.
On the other hand, Ben Kallo, an analyst at Robert W. Baird, awards Volkswagen with high scorers; however, he is uncertain if its competitor, Volkswagen, can be able to defeat Elon Musk. Volkswagen is a potential leader when not surveyed in the ‘Tesla’ portion of the Electric vehicle market. A non-Tesla network would arise, just like that of the non-Apple ecosystem of smartphones like Android.
Apple Inc. developed a network that uses hardware technologies like processing chips and camera sensors with software lock-ins like the iOS operating system and the App Store. Many of its customers might be displeased at large, but Apple has always clung to its proper lightning charging cable. Tesla has done the same thing with electric vehicles, where it developed its battery technology, electric automotive, and driver-assistance networks. Tesla has developed a fast-charging technology that other vehicles cannot use yet.