Volkswagen logo – illustration photo.
Prague/Plzeň – The Volkswagen Group (VW) remains determined to build factories for the production of battery cells with a capacity of approximately 240 gigawatt hours (GWh) in Europe by 2030. However, it needs the right framework conditions and wants to take into account the final framework of EU legislation regarding the so-called new Green Deal. The decision-making processes for the construction of gigafactories in Europe and North America are independent of each other. Škoda Auto, which is part of the VW group, stated this in today's statement to ČTK.
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The automaker responded to the Financial Times' information that the concern is postponing the decision to build a gigafactory and now wants to focus on building a similar factory in North America. Czech government spokesman Václav Smolka told ČTK that the decision to build a factory in America had been planned for a long time and was not related to the factory in Europe.
“Volkswagen is examining different locations in different regions of the world for the construction of its gigafactories. These decision-making processes are independent of each other. There is no connection between the decision to locate the gigafactory in North America and the decision to locate it in Europe. At the same time, we cannot talk about prioritizing North America over Europe. An ideal production process with regard to the environment assumes a synergistic grouping of the production of electric cars and battery cells, especially taking into account the number of car production plants in Eastern Europe,” said Škoda Auto.
According to Škoda representatives, no decision has yet been made and the evaluation process continues. Before investing billions of euros, the concern will again carefully assess plans for individual regions. There is no need to make a decision immediately, because the steps taken so far guarantee the coverage of battery supplies until 2028.
“The Czech Republic is in an excellent position among the candidate countries for acquiring a gigafactory. However, we now have to wait to see what the so-called new Green Agreement will bring. The concern must also evaluate it from the point of view of subsidies and investment incentives,” said the Chairman of the Škoda Board of Directors, Klaus Zellmer.
“We were informed in advance about Volkswagen's plan for a battery factory project in the United States. This morning I spoke by phone with Martin Jahn from Škoda Auto management, who confirmed to me that the decision on a gigafactory in the USA does not affect a similar project in Europe, ” said Industry Minister Jozef Síkela (for STAN) on Twitter.
According to the Financial Times, Volkswagen in North America could receive incentives in the amount of ten billion euros (235 billion CZK) for the factory. VW is now waiting to see how the European Union will react to Washington's massive support for green energy, which amounts to 369 billion dollars (CZK 8.25 trillion).
MPO: Negotiations with the VW concern about the gigafactory continue
Negotiations between representatives of the Czech government and the Volkswagen Group regarding the possible construction of a factory for batteries for electric cars in Líny near Plzeň continue, as does the technical preparation of the project. ČTK was informed today by the spokesman of the Ministry of Industry and Trade (MPO) Vojtěch Srnka. He reacted to the Financial Times' information that the concern is postponing the decision to build a gigafactory and now wants to focus on building a similar factory in North America. Government spokesman Václav Smolka told ČTK that the decision to build a factory in America had been planned for a long time and was not related to the factory in Europe.
The chairman of the board of Škoda Auto, Klaus Zellmer, also spoke a week ago about the fact that Volkswagen will need more time to make a decision on the gigafactory. According to him, the reason is the possible consideration of changes in the new package of support measures in the Green Deal program, which is being prepared by the European Union. “The Czech Republic is now in an excellent position among the candidate countries to acquire a gigafactory. But we need to wait to see what the so-called new Green Deal will bring. The concern must also evaluate it from the point of view of subsidies and investment incentives,” said Zellmer.
According to the Financial Times, Volkswagen now wants to focus on the construction of a similar factory in North America, where it could receive incentives in the amount of ten billion euros (235 billion CZK). Volkswagen is now waiting to see how the European Union will react to Washington's massive support for green energy, which amounts to 369 billion dollars (CZK 8.25 trillion). At the same time, the paper writes that Volkswagen continues to count on the construction of battery factories in Europe as well. However, according to the concern, the “correct framework conditions” are needed for this.
“Friday's decision of the supervisory board on the construction of the gigafactory was planned for a long time and we were assured that it was not related to the factory in Europe. The Volkswagen company informed us that the final “He wants to announce the decision on the construction of a gigafactory in Europe, which the Czech Republic is applying for, only after the position of the European Commission on the American anti-inflation law is known,” said Smolka.
The Czech Republic is one of four candidates for a gigafactory in Eastern Europe. The investment should reach approximately 120 billion crowns.
According to the Governor of the Pilsen Region, Rudolf Špoták (Pirates), the transfer of battery production to North America would mean for the Czech Republic a fundamental loss of the chance to develop the industry and other areas that follow on from the automotive industry. “This is a fundamental project, the loss of which could take revenge on the Pilsen Region during the transformation of the world economy,” he told ČTK. According to Špoták, if the Volkswagen concern's decision is confirmed, the Pilsen region would lose the planned investments in the infrastructure and development of the region in the order of tens of billions of crowns. “I can't help but fear that our behavior will come back to us like a boomerang. Letting strong investors go to other parts of the world, it seems to me that Europe is unteachable,” he added.
“We will (move to the US ) we don't believe it. In our opinion, it's just information for the media, let's say to calm the crowds, because in the article (Financial Times) it is written at the end that they continue to act. Basically, it's creating pressure on the European Union, and thus on the Czech government,” he said ČTK Michal Švihla, representative of aviation schools from Líní and the European Association for the Development of General Aviation, EAGA, who wants to develop the reserve army airport in Líní and maintain its functioning.
“If it turns out that this is true , it just confirms that the whole project is not prepared, not discussed in the affected area, and if it were true, then I am happy about it,” Pilsen mayor Roman Zarzycký (ANO) told ČTK.
