Bosch and VW plan production systems for battery cell manufacturing

Bosch and VW plan to deliver integrated battery production systems and support battery cell and system manufacturers in scaling up and on-site maintenance. According to their own statements, both companies aim to achieve "cost and technology leadership in the industrialization of battery technology and the mass production of sustainable, modern batteries." Both partners already bring relevant experience in battery production: VW already has a pilot battery production in Salzgitter and plans six battery factories in Europe. Bosch wants to be able to offer its customers a complete factory equipment for battery production - from individual components to software solutions to complete assembly lines. However, this does not involve cell production, but the assembly of modules and packs.

These competencies are now to be combined in the partnership: VW builds vehicles and sees itself on the way to "becoming a significant battery cell manufacturer." Bosch, on the other hand, claims to offer "excellent know-how in factory automation and system integration." This should make all steps in battery production from the cell to the vehicle more efficient. The initial step was the establishment of a "project house" to explore industrialization solutions for battery production in Europe. By the end of 2022, the formation of a concrete company is to be prepared. Thomas Schmall, Volkswagen Group's technology board member and chairman of the Volkswagen Group Components Board, explains:

"Europe has the unique opportunity to become a global powerhouse for batteries in the coming years. There is strong - and growing - demand for all aspects of battery production, including the equipment for new gigafactories."

He adds:

"Volkswagen and Bosch are exploring the opportunities to develop and shape this upcoming multi-billion-dollar industry in Europe. Significant new business opportunities arise from the decision to actively engage in vertical integration along the battery manufacturing value chain. We are working on building a fully localized European supply chain for e-mobility 'made in Europe' - a historic opportunity in economic history."

Rolf Najork, member of the board of management of Robert Bosch GmbH and chairman of the executive board of Bosch Rexroth, adds:

"Together with Volkswagen, we are seeking a way to industrialize production processes for battery cells with standardized equipment. We offer the best conditions for this: Bosch is not only one of the world's largest automotive suppliers but also one of the leading factory equipment suppliers. We understand battery technology and have the know-how to manufacture it."

The signing of the letter of intent took place virtually due to the pandemic. In addition to Najork, Günter Krenz, Head of Bosch Manufacturing Solutions, and Aemen Bouafif, advisor to the Bosch board of management, attended the signing for Bosch. Alongside VW board member Schmall were Frank Blome, head of battery Volkswagen Group, and Sebastian Wolf, head of operations battery cell Volkswagen Group. For the former European head of Farasis Energy, it was one of his first appearances for his new employer.

What does that mean?

Bosch and VW want to achieve cost and technology leadership in battery assembly - but still exclude the topic of cell production. This somewhat retreats to the German strength of mechanical engineering, which remains one of the strong assets in the country. Unfortunately, this excludes the crucial issue of cells, which still needs to be largely sourced from Asia, and where almost exclusively Asian manufacturers dominate.