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Volkswagen (VWAGY - Free Report) continues to make significant strides in the electric vehicle (EV) market with the unveiling of its new ID.7 electric sedan and a supply chain deal in Indonesia. The ID.7, which promises impressive range and advanced features, is set to be launched in Europe and China in 2023, followed by North America in 2024. Meanwhile, Volkswagen's partnership with Ford (F - Free Report) , Vale (VALE - Free Report) , and Huayou Cobalt in Indonesia is aimed at capitalizing on the country's abundant nickel resources and securing a stable supply of EV batteries.
New Model Reveal: ID.7
The ID.7 electric sedan is set to become Volkswagen's flagship EV, with the ID.7 Pro S boasting a range of up to 435 miles (700 km) WLTP on an 86 kWh battery and the ID.7 Pro offering up to 382 miles (615 km) WLTP on a 77 kWh battery. The vehicle also features a standard augmented reality head-up display, a first for Volkswagen. Production of the ID.7 for Europe and North America will take place at the company's Emden electric mobility plant.
CEO Thomas Schäfer stated that the ID.7 is a crucial part of Volkswagen's electric offensive, with the goal of achieving an 80% electric car share in Europe by 2030 and producing only electric vehicles in the region starting in 2033.
More Into the Supply Chain Deal
In a bid to secure a stable supply of EV batteries, Volkswagen has collaborated with Ford, Vale, and Huayou Cobalt in Indonesia. The partnership will see Volkswagen utilizing Indonesia's vast nickel resources, which are vital for EV battery production. As the world's leading source of nickel, Indonesia offers a strategic advantage for automakers like Volkswagen. By sourcing nickel from Vale, one of the country's largest producers, Volkswagen can secure a stable supply of the essential metal.
This partnership follows Ford's recent deal with Vale and Huayou for a $4.5 billion nickel plant in the country, emphasizing the automakers' efforts to reduce battery production costs.
In 2022, Volkswagen had already partnered with Huayou to secure supplies of nickel and cobalt in Indonesia. With battery costs accounting for 40-60% of an EV's price, reducing the expenses associated with battery production is crucial to making EVs more accessible and competitive in the market.
Indonesia's commitment to improving its nickel operations and shifting its mining and smelting industries toward renewables further enhances the investment potential in this partnership. President Joko Widodo emphasizes the importance of monitoring and strengthening management control systems in preparation for the expected boom in nickel mining.
VWAGY’s Big Electrification Push
Volkswagen plans to invest EUR 180 billion in 2023-2027 to cement its position in the EV domain. By 2025, out of every five vehicles sold, one is expected to be all electric. The investment is expected to peak in 2025 and may start declining thereafter. The auto manufacturer’s BEV share stood at 7% in the last reported year and with its new model launches, the BEV share is expected to reach 10% of total deliveries in 2023. VWAGY's efforts are centered around its ID. electric vehicle family, which includes the ID.3, ID.4, ID.5.
The new models scheduled for 2023 are the ID.7, ID.3, ID. Buzz Long Wheel Base, Audi Q8 e-tron and CUPRA Tavascan. The ID. electric vehicles are built on VWAGY's modular electric drive matrix (MEB) platform, which allows for scalable production and flexible design. The company plans to produce the ID. family of vehicles at its plants in Europe, China, and the United States.
VWAGY acquired a 4% vehicle market share in the North America market and targets to increase the share to 10% by the end of 2030. This will be mostly driven by the rollout of the ID. Buzz and ID.7 in 2024.
In addition to its electric vehicle production, VWAGY is investing heavily in battery technology and production. VWAGY aims to have six gigafactories producing battery cells in Europe by 2030, with a total production capacity of 240 GWh. Moreover, VWAGY is committed to sourcing sustainable and ethically-produced raw materials for its batteries. The company has partnered with various mining companies to secure supplies of nickel, cobalt, and lithium, crucial components of EV batteries.
VWAGY's electrification efforts are also reflected in its charging infrastructure. The company’s joint venture with Enel X to provide a comprehensive charging network for its customers across Europe bode well.
Conclusion
Volkswagen's unveiling of the ID.7 and the supply chain deal in Indonesia are clear indicators of the company's commitment to expanding its presence in the EV market. With the ID.7 set to become the new flagship EV in Volkswagen's lineup, the company is well-positioned to offer a diverse range of electric vehicles catering to various market segments. Additionally, as Volkswagen seeks to lower production costs and bolster its position in the EV market, investors can capitalize on the company's strategic efforts to secure essential raw materials for a robust EV battery supply chain.
The company's efforts in electric vehicle production, battery technology, sustainable raw materials sourcing, and charging infrastructure position it well to achieve its ambitious goals and drive its future success.
VWAGY currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the company’s 2023 and 2024 revenues implies a year-over-year uptick of 1.1% and 2.4%, respectively.
Image: Bigstock
Volkswagen (VWAGY) Ups EV Game: ID.7 Debut & Battery Supply Deal
Volkswagen (VWAGY - Free Report) continues to make significant strides in the electric vehicle (EV) market with the unveiling of its new ID.7 electric sedan and a supply chain deal in Indonesia. The ID.7, which promises impressive range and advanced features, is set to be launched in Europe and China in 2023, followed by North America in 2024. Meanwhile, Volkswagen's partnership with Ford (F - Free Report) , Vale (VALE - Free Report) , and Huayou Cobalt in Indonesia is aimed at capitalizing on the country's abundant nickel resources and securing a stable supply of EV batteries.
New Model Reveal: ID.7
The ID.7 electric sedan is set to become Volkswagen's flagship EV, with the ID.7 Pro S boasting a range of up to 435 miles (700 km) WLTP on an 86 kWh battery and the ID.7 Pro offering up to 382 miles (615 km) WLTP on a 77 kWh battery. The vehicle also features a standard augmented reality head-up display, a first for Volkswagen. Production of the ID.7 for Europe and North America will take place at the company's Emden electric mobility plant.
CEO Thomas Schäfer stated that the ID.7 is a crucial part of Volkswagen's electric offensive, with the goal of achieving an 80% electric car share in Europe by 2030 and producing only electric vehicles in the region starting in 2033.
More Into the Supply Chain Deal
In a bid to secure a stable supply of EV batteries, Volkswagen has collaborated with Ford, Vale, and Huayou Cobalt in Indonesia. The partnership will see Volkswagen utilizing Indonesia's vast nickel resources, which are vital for EV battery production. As the world's leading source of nickel, Indonesia offers a strategic advantage for automakers like Volkswagen. By sourcing nickel from Vale, one of the country's largest producers, Volkswagen can secure a stable supply of the essential metal.
This partnership follows Ford's recent deal with Vale and Huayou for a $4.5 billion nickel plant in the country, emphasizing the automakers' efforts to reduce battery production costs.
In 2022, Volkswagen had already partnered with Huayou to secure supplies of nickel and cobalt in Indonesia. With battery costs accounting for 40-60% of an EV's price, reducing the expenses associated with battery production is crucial to making EVs more accessible and competitive in the market.
Indonesia's commitment to improving its nickel operations and shifting its mining and smelting industries toward renewables further enhances the investment potential in this partnership. President Joko Widodo emphasizes the importance of monitoring and strengthening management control systems in preparation for the expected boom in nickel mining.
VWAGY’s Big Electrification Push
Volkswagen plans to invest EUR 180 billion in 2023-2027 to cement its position in the EV domain. By 2025, out of every five vehicles sold, one is expected to be all electric. The investment is expected to peak in 2025 and may start declining thereafter. The auto manufacturer’s BEV share stood at 7% in the last reported year and with its new model launches, the BEV share is expected to reach 10% of total deliveries in 2023. VWAGY's efforts are centered around its ID. electric vehicle family, which includes the ID.3, ID.4, ID.5.
The new models scheduled for 2023 are the ID.7, ID.3, ID. Buzz Long Wheel Base, Audi Q8 e-tron and CUPRA Tavascan. The ID. electric vehicles are built on VWAGY's modular electric drive matrix (MEB) platform, which allows for scalable production and flexible design. The company plans to produce the ID. family of vehicles at its plants in Europe, China, and the United States.
VWAGY acquired a 4% vehicle market share in the North America market and targets to increase the share to 10% by the end of 2030. This will be mostly driven by the rollout of the ID. Buzz and ID.7 in 2024.
In addition to its electric vehicle production, VWAGY is investing heavily in battery technology and production. VWAGY aims to have six gigafactories producing battery cells in Europe by 2030, with a total production capacity of 240 GWh. Moreover, VWAGY is committed to sourcing sustainable and ethically-produced raw materials for its batteries. The company has partnered with various mining companies to secure supplies of nickel, cobalt, and lithium, crucial components of EV batteries.
VWAGY's electrification efforts are also reflected in its charging infrastructure. The company’s joint venture with Enel X to provide a comprehensive charging network for its customers across Europe bode well.
Conclusion
Volkswagen's unveiling of the ID.7 and the supply chain deal in Indonesia are clear indicators of the company's commitment to expanding its presence in the EV market. With the ID.7 set to become the new flagship EV in Volkswagen's lineup, the company is well-positioned to offer a diverse range of electric vehicles catering to various market segments. Additionally, as Volkswagen seeks to lower production costs and bolster its position in the EV market, investors can capitalize on the company's strategic efforts to secure essential raw materials for a robust EV battery supply chain.
The company's efforts in electric vehicle production, battery technology, sustainable raw materials sourcing, and charging infrastructure position it well to achieve its ambitious goals and drive its future success.
VWAGY currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the company’s 2023 and 2024 revenues implies a year-over-year uptick of 1.1% and 2.4%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.