Volkswagen and Swedish battery manufacturer Northvolt will build a factory for the production of lithium-ion batteries and have set up a 50/50 joint venture for this purpose.
The two companies had already agreed on the cooperation in June. Volkswagen was investing around 900 million euros (992.8 million U.S. dollars), some of which will flow into the joint venture and some will go directly to Northvolt.
In return, Volkswagen had received around 20 percent of the shares in the Swedish battery manufacturer and a seat on the supervisory board.
Volkswagen announced that construction of the factory in Lower Saxony was scheduled to start in 2020. Production is planned to start around the turn of the year 2023/2024 and the annual output would initially be 16 gigawatt hours.