Car manufacturer Volkswagen will invest €180 billion over the next five years after orders of battery electric vehicle (BEV) deliveries grew by 26 per cent in 2022.

The company will spend this investment on battery cell production, growing its presence in North America and digitalisation in China.

Around 68 per cent of this investment will be allocated to electrification and digitalisation, compared to 56 per cent in the previous five-year plan. Roughly €15 billion euros will be spent on battery plants and raw materials.

Investment in combustion engine technology will peak in 2025 and decline from then on, the carmaker said, as it works towards its target of 50 per cent all-electric sales globally by 2030.

Volkswagen has also announced that it will open a battery cell plant in Canada, its first outside Europe, where it will start production in 2027. The group also has plants in Valencia, Spain and Salzgitter in Germany.

Commenting on the news Oliver Blume, Volkswagen Group chief executive, said: “BEVs accounted for a record seven per cent share of total deliveries – a significant milestone that we will build upon this year as our popular model range continues to grow.”

He added: “In line with our Ten-Point Plan, we took important steps to execute our strategy, including new product strategies for our brands, the streamlining of our platforms and a revised software roadmap.“

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