Oliver Blume, the CEO of Volkswagen, stated at a conference in Berlin on November 15 that an electric vehicle with a price tag of around $22,000 is feasible by the latter half of the decade.
Blume cited developments in its unified battery cells, which VW says would result in a 50% reduction in battery costs. In 2021, Volkswagen debuted the new battery cells during its Power Day. Moreover, the automaker noted that up to 80% of all VW Group EV vehicles will be able to utilize the flexibility of the cells.
Starting in 2025, the unified cells will be produced at the company’s Salzgitter, Germany, facility. The automaker intends for the facility to eventually have an annual capacity of 40 GWh, or enough energy for 500,000 cars.
“It is our duty to introduce appropriate products into the market at reasonable prices,” Blume stated.
Volkswagen revealed plans back in March for the ID 2all concept, its most affordable EV to date, to take on industry giants like Tesla and China’s BYD. Starting at less than $27,000, the ID 2all has a range of up to 279 miles. The company aims to unveil the production version model for Europe in 2025.
At the conference, Blume also stated, “After early adopters were reached with electric cars, we now need consumers who don’t have the opportunity to install charging stations at home to be convinced by the technology.”
Volkswagen described the ID 2all as having a 10%–80% quick charge time of 20 minutes. The manufacturer has not yet released more information about the model.