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Power Day 2021

Mar 15, 2021

Herbert Diess
Chairman of the Board of Management, Volkswagen Group

Thank you for tuning in. Let me begin with the obvious. E-mobility has won the race. It is the only solution to reduce mobility emissions fast. Five years ago, we decided to build a single platform for electric cars. Many in the industry questioned our approach at that time. Today, they are following suit while we are reaping the fruit. Our group models account for a quarter of all BEVs sold in Western Europe and are conquering market share around the world. E-mobility is the key pillar of Volkswagen's forward strategy. In the next few hours, we will present to you our power roadmap, the most important lever for electric mobility. We will take a holistic approach and expand our e-mobility value chain. Our goal is to secure a pole position in the global scaling of batteries.

We will make charging as easy as fueling by strengthening our charging network in Europe, the United States, and China, and we will combine mobility and energy management. Power will become a new core competence for Volkswagen and an integral part of our platform strategy. With 10 million cars a year, we know how to use platforms and synergies to transform a business successfully and unleash value. We have been at the forefront of e-mobility across the world, both in terms of technology and in terms of scale. Now we are applying the same principle to battery technology. We will focus on one standard battery. From 2023 onwards, we will be ready for rollout. By 2030, one cell format will cover 80% of the use cases within the group. The one size fits almost all cell design and high scales will radically reduce battery costs.

In our entry segment, the unified cell will bring down battery costs by 50% compared to today. Lower prices for batteries means more affordable cars, which makes EVs even more attractive for customers. We are taking an end-to-end approach. Our first battery recycling station is already in test mode. We have researched piloted production and are now on par with many suppliers. The new European Green Deal means that our BEV share will double to almost 60% in 2030. Battery capacity needs to grow in parallel. For us, this means an additional demand of about 240 gigawatt hours in Europe. That is why we are taking action. We are planning to operate up to six gigafactories with 40 gigawatt hours each across Europe on our own and in collaboration with partners. We are reducing the costs for batteries, thus reducing the price for electric models.

We will make charging as easy as fueling by taking high-power charging to the next level. We will multiply the number of fast charging points in Europe by factor five over the next four years, together with partners, to cover one-third of the demand by 2025. In the U.S. and China, Volkswagen is building nationwide fast charging networks. We will create the largest public high-power charging network. Additionally, we are combining mobility and energy in an innovative way. The electric car will become an integral part of the future energy system. Electric vehicles will become mobile power banks. They will bring the green energy transition to a new level. It will be possible to manage energy in and around your house in a smart way, reducing costs for the customer and optimizing the grid. Now, let me hand over to my colleague, Thomas Schmall.

Thomas has built an impressive transformation track record. He has successfully electrified Volkswagen Group Components, our components business, which alone is a company with 80,000 employees. He has just joined our group board and now heads up the powerhouse for our e-mobility ecosystems. Thomas, the stage is yours. See you again later.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Herbert. Ladies and gentlemen, welcome to the Volkswagen Powerhouse. The Volkswagen Powerhouse, it is a technology division inside Volkswagen. We have two main pillars. The first main pillar, on the left side, you can see is the battery cell and the battery system. On the right side, you see the second pillar, charging and energy. These are the most two game-changer inside the EV world. Let us start with the left side, battery cell and battery system. The first challenge for a big OEM is scale. In the EV world, size matters. That means you need to find a way to have huge volume over a big spread of product portfolio. That is the base for everything in the EV world. Based on that, the second challenge will be the technology roadmap, which technology you are using.

Be right in time, and for sure, the price, hitting the price targets.

This, in the EV world, need for speed, because we need ramp up fast. You have two points where you can accelerate. The first point is organizationally. You need put all responsibilities together in one hand. This is the reason why we call this closed loop. We are not working longer with this new division of powerhouse in segments or in pillars inside the company. We have one hand, one responsibility, looking to the closed loop in total. That means we have the battery cell, the battery system, the first use, the second use, we will explain later, and for sure, the recycling. If you have the structure based in, what is the next? The next is the technology roadmap. We have a fundamental mind change inside our company.

We are not looking longer to a current approach, making cars and defining out of the cars the batteries or the battery system. We will put the battery in the middle of the heart of our development of cars. This is a major cross point in the EV world. If we have the volume, and we will roll it out, we need put it in the middle, in the center of our cars, and then defining the cars around the battery. Sounds easy. How we do that? We are calling that unified cell concept. You probably will see four times the same design of a cell on this picture. T` he intelligence is inside. You have not a unique cell. You have a format, a design, what is similar overall, but we are different inside. How this works, we will explain you in some seconds.

With this concept, we are really able to put 80% of a unified cell in our cars. 20%, for sure, a big OEM as Volkswagen need specific solution, independent from the cell design. That can be a prismatic, a pouch, or a prismatic cell. It does not matter. Major important is that we have the 80% based on the same design, on the same format to achieve economics of scale. When we start? We will start in 2023. It is more or less tomorrow with this unified cell concept inside the group. The rollout starts in 2023, and then ramping up, we will achieve in 2030 the 80% I promised you. With the 80% on space, we can make a huge cost focus. We are reaching our cost targets in the volume segment.

That means we will be 30% less than today in the cost of a cell in the volume.

We have on top the possibility to achieve a 50% cost increase in the entry segment. As you can see, the intelligence is inside. We need talk a little bit how this works. Coming back to the closed loop, the first point in the battery cell is the chemistry. I would like to welcome Frank Blome on stage. Please, Frank.

Frank Blome
Head of the Battery Cell and System Business Unit, Volkswagen Group Components

Thank you, Thomas.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Frank, before I hand over, promise me to make it not too complicated, please.

Frank Blome
Head of the Battery Cell and System Business Unit, Volkswagen Group Components

I will try.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you.

Frank Blome
Head of the Battery Cell and System Business Unit, Volkswagen Group Components

I will do what I can. Thank you, Thomas. Let's get into the inside of the battery cell. That's the chemistry, basically. We do have an entry chemistry with iron phosphate. On a long-term base, we see high manganese content for the volume vehicle segment. For specific solution, high nickel, manganese, and cobalt is important because high nickel means high range, high performance. The end game out of our point of view is solid-state. Before I get started, I have to explain a bit, what a lithium-ion cell is. We see the anode, very simplified view, a separator, the electrolyte, and the cathode. The anode drives the charging very much. The cathode drives the range and the cost of the battery cell and the battery systems very much. Let's get to the cathode. The cathode is the control lever for sustainable supply chain, cost, and range.

Here we see the state-of-the-art technology. The chemistry today typically used in all electric vehicles is nickel, manganese, and cobalt. That defines the cost of the cell by 40%. I don't think there's any other layer into the car what defines cost that much. Also the range comes out of the cathode by 90%. Getting to LFP. LFP has a big cost advantage, a slight range disadvantage. Iron phosphate, that's LFP, comes without any cobalt, nickel, and manganese, and is a very robust technology. The cycle stability is very good. That means especially for cars with low range, this is a very promising technology. High manganese cells. That's a long-term, out of our point of view, very promising technology because it's cheaper. Nickel content is lower. Nickel is quite expensive. Cobalt is, too.

There's no cobalt any longer in the cell, and the range is on the same stage than the cells today, the state-of-the-art technology. Let's get to the anode. As said, the anode is a control level for charging performance. If the anode is charging, all the lithium has to go into the anode. That's why it's 100% performing the charge time, the charge performance. The anode also has a chance to improve energy density and with that range by 10%. That can be done by synthetic graphite plus silicon. If we get silicon into the anode, we have a better range. It's +10%, and the charging time performs better, too, because the silicon can connect more lithium ion than just the graphite. We do have it in production.

The Porsche Taycan and the Audi e-tron GT are using that already, and they are the benchmark for charging time in these days. Now I'd like to talk about solid-state. Again, this is the end game for battery, lithium-ion battery cells. The simpler design leads to higher performance and lower cost. We start again with a more concrete sketch, a more detailed sketch of anode and cathode. T he anode content is copper and graphite, separators in between, electrolyte is there, too, and it's fluid electrolyte to make sure the lithium ion can move between the two parts. Cathode is on the other side content, in this case, it's NMC and aluminum. Coming to solid-state, here we see that there's no graphite any longer, no liquid electrolyte. Separator is the key of success.

That's containing, the solid-state technology, making sure that the lithium ion can go in one and the other direction. With that, we have an improvement of weight, of cost, and of charging time. There's no barrier any longer as graphite or silicon for charging. Only the anode today in an ID.3 with the biggest battery is 100 kilogram. We can get rid of that weight, too. That means the charging time can be less than a half compared to state-of-the-art technology, and the range will be +30% because the cell has less weight, is easier and simpler. I wanted to prove that with data. Here we see data from our partner, QuantumScape. The solid-state battery will come in now, and you see that a solid-state battery, as we have it now, and a 10%-80% is a typical charging with high-performance charging.

Here we are at 12 minutes already. That's a proof of concept for the technology. A standard state-of-the-art cell today is between 35 and 20 minutes, so faster is always better. That's a big thing we made here with our partner, QuantumScape. Of course, there's still a lot to do to industrialize the technology, but the proof of concept for the design we see already here. What does that mean in reality? In reality, we just took out a few examples, 450 kilometer or 280 miles range from Los Angeles to Las Vegas, for example, Leipzig to Munich, or Beijing to Dongying, and that has to be done today with a charging time of 25 minutes. 25 minutes is not too bad, but we are planning to get to 17 minutes until 2025, and with solid-state technology after 2025, we are able to do it in 12 minutes.

That's a big advantage and will help the customer to adapt the technology also to long-distance drives. Now I want to come to race applications, race applications for lithium-ion batteries. It's my pleasure to hand over to Oliver Blume.

Oliver Blume
Chairman of the Executive Board, Porsche

Thank you very much to Frank Blome. Hello and welcome from the Design Center Weissach. It's a pleasure to contribute to the Power Day. Indeed, the battery cell is tomorrow's combustion chamber. This is no less true in the high-performance sports car segment that Porsche inhabits. Motorsport has always been a development laboratory for Porsche. Things that have been proven on the racetrack are later incorporated in the production. This is an integral part of the Porsche DNA. We have also transferred this principle to the development of our fully electric production sports cars. For example, the Le Mans-winning Porsche 919 provided a crucial basis for development of the all-electric Porsche Taycan. For the Taycan, we adopted the innovative 800-volt technology as well as the cooling concept and virtual development methods from our 919 LMP1 race car. This is all superior technology that successfully differentiates Porsche from the competition.

Our electrified high-performance sports and racing cars place the highest demands on battery technology. To meet these demands, Porsche needs special high-performance cells. Our goal must be to ensure a permanent supply of high-performance cells that fully satisfy our specific requirements for future electrified race cars and electric super sports cars. Porsche has further developed the engine of the 911 for use on the racetrack in the 911 GT3 R. We must think in exactly the same way for battery cells. We must design them for our very specific purposes as high-performance cells. Our goals are clear. Porsche will systematically build up know-how in the area of high-performance cell chemistry. We will ensure that there is a completely European production chain for high-performance batteries. These are intended for use in high-performance, limited production run cars and in customer motorsport.

As carryover effect, also volume and power cells will benefit from this technology experience. What possibilities do we see for development of specialist high-performance batteries? We have identified various key factors here. New materials, such as silicon as a main anode component, optimize energy density and reduce internal resistance. This leads to a significant improvement in energy recuperation and fast charging capability. New electrolytes and additives also permit operations at temperatures above 75 degrees Celsius. An optimized cell design with thinner electrodes also leads to a reduction in internal resistance. Improved cooling of the cells increases the thermal performance of the overall system. In order to meet the extreme demands placed on the cell systems in high performance use, it is necessary to change the cell chemistry from graphite to silicon anodes. Silicon has the potential to be a game changer.

It can theoretically store 10 times more lithium ions than graphite. Silicon has a much lower lithium plating tendency than graphite, and therefore, a much higher fast charging capability, and the thinner layers reduce internal resistance. Innovative high-performance batteries, therefore, have great potential. We will test these innovations in motorsport. We will also significantly improve the performance of and charging convenience for electric production cars through corresponding know-how transfer. This will contribute greatly to the wider acceptance of electro-mobility. F ar for now, back to Wolfsburg.

Jörg Teichmann
CFO, Volkswagen Group Components

Thank you, Oliver. We are all proud to be a part of the power team. We think closed loop, but we are open-minded. We are convinced that the battery is the key to lead in e-mobility, if we manage the complete supply chain powerful. The task is big. We prepare now the second wave of industrialization with the next generation of technology. Supply chain strategy is set to secure electric vehicle volume ramp-up and achieve cost leadership. Vertical integration is the key for this. Let's take a short look into the value chain. One-third of the cost are battery manufacturing, engineering, and integration in the vehicle. Two-third are components, raw material, and also raw material processing. As you heard before, we will see many of innovations in manufacturing process and chemistry. At this point, our strategy for vertical integrations comes in.

We clearly follow a cost volume strategy to ramp up e-mobility on Volkswagen Way to Zero. The clear plan, unified cell is the base. The volume per unit will goes up and the scale cost goes down. Delivering innovations to customer even faster is a part of the plan. This will guide us to a cost leadership position in e-mobility. Robust and innovative supply chain are vital for our growth. We will extend our scope. The entire value chain competes for the most interesting chunks of the business. Volkswagen is in a pole position. At the unified cell format, the level outstanding scale effects, this enable us to redesign the traditional supply chain setup. It will also provide us with flexibility to shift between make and buy for cells and related processes, upstream or downstream, by focusing on strategic partnership.

Throughout the entire value chain, we will decrease complexity and increase implementation speed. All options are on the table to move between make or buy or partnership in various constellation on our own with partners. In-house cell production is only a step along the supply chain, and we are committed to that. Take recycling, another example of doing the right things in terms of circular economy, but also a field of rich new business opportunities. Thinking closed loop is not only a matter of business sense. Customer expect our products to contribute to climate protection. They want the supply chain to be transparent and sustainable as possible. They demand continuous improvement, that we keep our product up to date. It's a must. They choose us because of new technology and top performance in terms of range and fast charging. They deserve best value for money.

We will define the next battery generations for e-mobility now. The unified cell strategy is our entire ticket in the vertical integration in our value chain. This will allow us to exceed our customer expectations, contribute in the sustainability green Volkswagen footprint, scaling and ramp up into large volume, new strong partnerships, and robust raw material supplies. Supply chain with a high degree of local content. This is a historic chain for our partners and to use and to close the loop. The unified cell is the heart of our electric vehicles, and the vertical integration dictates the heartbeat. Thomas will give us a look in the production area.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Jörg. Thank you for this deep dive into the supply chain. Heartbeat, Jörg, I like it. Let us see. The next step in the closed loop is the production process. After we had a deep dive of chemistry and supply chain, let us talk a little bit about production. The main three processes are the production of the electrodes, the assembly of the electrodes, and then the finish. The next step you can see here. It will be the dry coating process. The dry coating process means what? All the light ones in the background, all the single processes, you can cut off the process. That brings you to what? That brings you to a 50% decrease of production area, to a 30% decrease of investment, and to much better CO2 balance sheet.

That means you can, with a better CO2 balance sheet, more or less double the output of existing site. What is a dramatic step in front. Now the big question is, after the dry coating process, and you put out all the steps, how we can make the process much faster. How you can stack as fast as possible the electrodes. For that, we prepared a small film for you. Here you can see something you don't really recognize. Now you see it more or less what it is, and now you know it. It's money. This will be the benchmark for us to stack electrodes. We like to come to the same speed of stacking electrodes like you can see here for money. This we will aiming for, and this we will realize. That means you will be really, really fast.

After the stacking of the electrodes, the next step will be to come from the cells to modules to battery system. For that, I'd like to invite Frank on the stage because he will explain again how this will work and how will it be this in the future. Frank, welcome on the stage, and please again, don't make it complicated.

Frank Blome
Head of the Battery Cell and System Business Unit, Volkswagen Group Components

Thank you, Thomas.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you.

Frank Blome
Head of the Battery Cell and System Business Unit, Volkswagen Group Components

This time it is easier. This time is much easier. I like to talk about a simulation we prepared, an animation where we see the battery system. Thanks to all our engineers preparing this, I really like this animation you will see right now. Today, we have a cell-to-module system. That means the cells become a module, the module is getting into the system, and that is a battery. The next step is cell-to-pack and cell-to-car. With cell-to-pack, the cells are getting into the battery system directly. The battery system then is a complete entity and gets into the car. For cell-to-car, it is even further advanced. For cell-to-car, the cells go into the battery cabinet, and the battery system is part of the integrated mechanical design of the vehicle.

Here we see the comparison between today and the future. The less complexity gets to better cost, better weight, and better volume of the system, and with that, we get to higher range of the vehicle. Now it is my pleasure to hand over to Markus Duesmann talking about the system approach, the first application of what I have shown here. Thank you very much.

Markus Duesmann
Chairman of the Board of Management, Audi

Hello, and a very warm welcome to all our viewers. We have heard a lot about battery technologies now, but what does it mean in practical terms, say, for the models we will present in the next few years? As some of you might know, we launched Artemis last June. Artemis helps us to ensure fast and agile launches of high-efficiency e-models for our customers. This is how we are developing a next-generation electric car in record time, which we will present to our customers late 2024. Furthermore, Artemis will develop the automotive ecosystem of tomorrow, meaning new services, business models, and partnerships, as well as innovative processes, methods, and engineering tools to strengthen our virtual product development. After almost nine months, we have now reached an important project milestone and successfully completed the concept phase for the first model based on Artemis.

We are now starting serial development of this project. The model will play a key role in its respective model series. Among other things, it will be the spearhead of our electronic platform.

This first model based on Artemis will also be the first one to use a new unified battery cell format. After all, the model will be highly efficient and fully suitable for long-distance travel. The battery is a key to make this possible. The Artemis model will be the initial use case for the cell-to-pack technology, the Group's new standard. Once again, the model serves as a pioneer for technology that we will later roll out across the entire Group. W ith that, back to Wolfsburg.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Markus. Thank you for that nice explanation. Battery system in the new car, Artemis. After the battery system, we step for the first-use cars, we step in the second use, we will come later back to the last process or last circle in the closed loop. The last circle is the recycling process. We as Volkswagen are taking this really seriously. Recycling, we invented a process we are calling hydrometallurgy process. With that process, we can recycle 95% of a cell. 95%, that means more or less only the separator you cannot recycle. The rest, we have the opportunity to bring all minerals back in the first step to make a cell. You can see how a cell will be in the different minerals divided. You can see it, and you see all of that, more or less all separator, we will recycle with our process.

We started the recycling process in January 2021 in our plant in Salzgitter. It is the first plant we installed a machine like that. How this work, we will show you in a small film. Well, congrats to the whole team in Salzgitter and in Wolfsburg that we have been the capacity to install something like that in such a short time. The main three advantages you can see here, we have more than one ton more CO2 per vehicle saving. We have for sure a sustainable effect as we are recycling the material, and the customer will benefit of the increase of the cost for. We have lower cost because we are able to use the minerals out of the cell again in the same process. That was it from the closed-loop approach. You can see all three circles we had been explained again.

After the closed loop, what is next? The next step is the localization strategy, how we will localize volume in Europe as a short view. Wow, that is nice. I like him. You can see out of the Green Deal, the share of the EV cars will increase for Volkswagen only for Volkswagen, from 30%- 60%. We will double in our volume scenario, actually, we have the EV share. That means what? That means the demand of 240 gigawatt hours only for Volkswagen in Europe. Or you can translate that in six plants or six sites with 40 gigawatt hours. Again, that is only the demand for Volkswagen. How we do that? The first step will be our plant with Northvolt together in Sweden. This plant, this site will come with start of production in 2023. It is also more or less tomorrow.

We changed a little bit the approach in the last weeks and months because what is the new story behind that? The new story is a new setup. The actual setup was that we have actually planned to make on two sites, in Sweden one and one in Salzgitter, more or less 30 gigawatts, two sites, same cell. Now, new step will be that we will increase our gigawatt hours for Northvolt in Sweden. We will go up in the end for 40 gigawatt hours only in the plant in Sweden, even have only one project team, only one location, and all resources bundled on that in Sweden. In Sweden, we will do the unified cell for the premium segment. On top, to speed up and to make it real, we like to install a 40-gigawatt plant in Skellefteå with a different cell format.

This will be the unified cell for the volume segment. That means we are two times higher in volume. Instead of 40, we have now 80. That gives you more volume in much faster time. We will have, in the summary, a cleaner project set up. We are bundling the resources. We will have less complexity in the process. We have a faster ramp-up and finally, a higher volume output. That makes the EV world real. Now I am really happy to see Peter Carlsson in Sweden. After Peter, our friends from TRATON and Scania will tell us something, how they can use cells in the big cars, in the trucks. F irst, let us see what Peter is telling us.

Peter Carlsson
Founder and CEO, Northvolt

Good afternoon, Wolfsburg. This is Peter Carlsson, founder and CEO of Northvolt. I am standing here at Wolftahouse in Stockholm in front of our big screen showing the ongoing development activities in our large-scale factory set up in Skellefteå in northern Sweden, where we are building one of the largest battery cell manufacturing in Europe. As you can see behind me, there is still a lot of snow in Skellefteå, and that snow will eventually, during the spring, become water in the rivers that will power the hydropower and thereby drive the electricity that will support this plant, making it the greenest setup for cell manufacturing that we are aware of.

This really brings the Northvolt mission of building the world's greenest battery into power, where we are focusing on everything from sustainable mining into manufacturing and also at the end of life to fully recycle the raw materials into our own manufacturing into a fully circular economy setup. This framework of sustainability has just grown over the last years, and we are also now seeing the EU regulatory moving towards driving sustainable batteries as a key enabler for the industry. The Volkswagen partnership and journey together started early. It started with developing and industrializing products together as a customer, also providing experience in scale-up and also becoming a major investor in Northvolt. We are now taking the second step in this partnership, where Northvolt will become the premium partner on high-performance cell development and manufacturing towards the Volkswagen Group.

We are consolidating that effort into Skellefteå and expanding Skellefteå, where Volkswagen is adding $14 billion in additional orders and capacities towards Skellefteå, and where we are developing the next-generation cells together with Volkswagen. On top of that, Volkswagen also committed to additional investments in the Northvolt's further funding rounds. We are extremely happy with this partnership, and I wish you all the best in the success at Volkswagen. Over to you, Christian Levin, TRATON and new CEO of Scania Bus and Trucks.

Christian Levin
CEO, TRATON

Thank you, Peter. The collaboration with Peter Carlsson and his team at Northvolt are really important, not only to Scania, but to the entire TRATON Group, and it greatly supports our strive to be the leader in the shift from conventional commercial vehicles to electrified commercial vehicles. Thank you, Peter. Is it even possible to electrify a heavy commercial vehicle weighing 40 tons? That was the question many of us asked ourselves maybe five years back in our industry and hesitated. T oday, the answer is clearly, yes, it is possible. T here are a few things you should keep in mind when you think about heavy commercial vehicles. The first is the amount of energy you need to carry on board in order to be able to drive the vehicle.

W e are talking in the range of six, eight, maybe 10 times the amount of energy compared to a car. Another is the utilization, where we maybe use our cars a couple of hours or maybe even one hour per day. For a truck or a bus, it is the opposite. They need to be standing still maximum an hour per day. F inally, it is the range, or it is the amount of kilometers we drive. We are talking about ranges of 150,000 up to even 300,000 kilometers per year. T here is also a business challenge to it. H e we need to talk about the concept of TCO, total cost of ownership. Now you buy a car for many reasons, but you buy a heavy commercial vehicle for one reason only.

It is an investment in a machine that you need in your business in order to make more money. TCO is the single most important item for our customers in order to be competitive towards their competitors.

That is why it is so important to drive the shift that battery electric vehicles can reach what we call TCO parity. Now, the good news is that it is not a question of if that will happen, but rather when it will happen. T here will be two challenges. Now, our vehicles are not sold in a couple of models. They are sold in millions of executions. T he challenge will be to, without losing payload, without losing space, to fit the batteries into all of these millions of lines of vehicles. The second challenge is the charging infrastructure. E ven if we reach TCO parity, if our customers cannot charge as they are on the road, they will not shift over anyway, which means that we need to have sufficient energy on board to drive the 4.5 hour.

Then for the charging, we need to be able to do a complete fill-up of these batteries in 45 minutes. Yes, going forward, we in principle see the same trends when it comes to the technology development, but the customer demands are different. W hereas our commercial vehicle customers mainly value energy and cost, the car customers would rather go for power, life length, and efficiency. T hat requires a different optimization of the cell. A s a result, we are actually going to use a different cell chemistry. Y es, overall, we have different customer demands when we walk down the electrification road. W ith that, I would like to leave the word over to Alexander Vlaskamp, Executive Vice President and Head of Sales and Marketing in Scania, to talk more about how the customers view the electrification journey going forward. Thank you very much.

Alexander Vlaskamp
EVP and Head of Sales and Marketing, Scania

Thank you, Christian. I could not agree more. The focus on total cost of ownership will be the decisive factor for our customer base to change over their fleet and transport solution to e-mobility. The Scania approach, also for batteries, is to take the entire scope from understanding the customer use case per application, to research and development, production, and beyond. Scania is therefore investing in the new battery laboratory, which will be fully operational by autumn 2021. The second life of the battery is also an important factor to look into, using batteries for energy storage solutions, for example. The customer is core, and for the customer, a battery electric vehicle requires less service than a conventional one, meaning higher uptime and improved cost per kilometer or hour of operations. Yet the initial investment for the customer is significant.

Just like we are world leader in energy efficiency for our combustion drivelines, we need to put as much focus on this energy efficiency for our electric vehicles, and it all starts with efficient batteries. We noticed that customers discovering that finding the right charging solutions is a complex matter, and we are supporting customers there. Based on historical route data, we are examining for our customers the best tailored solutions. However, on the hardware and power, we rely on partnerships with companies like ENGIE and EVBox. Together with these partners, we can offer charging equipment and power as a complete solution from Scania.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, our colleagues in Sweden. Thank you, Peter. We are totally convinced as Volkswagen that we will strengthen our partnership with you guys in Sweden with Northvolt. It's a fantastic project. I have been there several times. Unfortunately, now it's not so possible. W e are close together to ramp up this plant as fast as possible. On parallel, you have seen the chance what the Scania guys can do with our sales from Northvolt and other. Back to Salzgitter. As we like to go for start of production in 2025 in Salzgitter, this plant will be managed by Volkswagen. It will be the plant for the volume segment of the unified cell. To start in 2025 means you need move ground. Here you can see our Salzgitter facility, and there you can see the new cell plant we like to do there.

This is a huge ground movement. We will occupy around about 100,000 sq ms in Salzgitter plant, and it's a perfect, perfect symbol for transformation. Salzgitter was the heart of our combustion engines. We are transforming this plant in a new technology. We're transforming it in the future. We make the future happen in Salzgitter. How we do that with the people, I like to hand over to Günther Scharf, to our Center of Excellence for Battery Cells in Salzgitter. Günther.

Günther Scharf
Head of the Center of Excellence for Battery Cells, Volkswagen Group

Welcome to our state-of-the-art pilot line, opened two years ago. With around 450 employees and additional international locations in China and the U.S., we have concentrated the cell competence within the Volkswagen Group. We focus on future technologies for products and furthermore for innovative manufacturing processes for our large-scale production. Together with our partners, we create the batteries of tomorrow. The cell production can be divided in three parts: electrode production, cell assembly, and formation. The first step is to produce the electrodes, the anode and the cathode, coated aluminum and copper foils. The coating material is the most valuable asset in an electric vehicle and determines essential the properties for charging, power, and range. Those foils have to be stacked with the separators between to make the cell stack and placed it into the cell can.

During the formation steps, the cell will be activated by charging and discharging several times. Here you can see the completed cell. To build up know-how in Salzgitter, we invested EUR 100 million so far. Moreover, we plan tomorrow's factory, which will be located right next to this building. Now we will have a look inside to our new innovative laboratory. I hand over to my colleague, Jörg.

Jörg Teichmann
CFO, Volkswagen Group Components

Thank you, Günther. Indeed, this is the public premiere of one of the most advanced setups in the automotive industry. Here we dive deeply into the cells and unravel the key factors of performance to ultimately design the cells for the future. In our cell development lab, we develop the cell chemistries to fulfill the needs of our customers. Innovative materials and speed are key to reach our goals. Therefore, we develop anodes and cathodes in parallel on distinct lines, and the most promising designs will then be transferred to the pilot line. Our analytical lab is dedicated to support the development and quality assurance. We have a complete set of state-of-the-art devices and even cutting-edge devices. We can see the lithium in our cells through a very powerful scanning electron microscope, and just a few of its kind are in use worldwide.

We can fine-tune the cell designs and understand underlying mechanisms. Here where I stand, we do performance testing. The test field is highly automated and energy efficient, and the most important test is fast charging. On screen, here's your test run of a cell in early stage of development. The results are very promising. Fast charge to 80% is possible in about 12 minutes, and this is close to our goal of 10 minutes. For the customer, this would already mean cutting charging time in half. M uch for now from the labs. Bye and back to Günther .

Günther Scharf
Head of the Center of Excellence for Battery Cells, Volkswagen Group

With the expansion of the Center of Excellence, we have set an important milestone for our future battery cell strategy. We therefore make sure to offer our customers the most attractive electric vehicles. With that, I say goodbye from the Center of Excellence in Salzgitter and back to Wolfsburg.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Günther . Thank you for this nice explanation out of Salzgitter, our Center of Excellence in Europe. After Europe, we will have a second Center of Excellence in China, more or less the same impact. Then we come to States. That means we will triple our Salzgitter Center of Excellence. We will have three times worldwide a Center of Excellence. Back to our site production in Europe, what we are doing here. I explained to you the first plant, 2023, will be Sweden. The second plant will be Salzgitter. Where will be the third and fourth plant? You can have an idea more or less here on this picture. The third plant we like to do in Spain, in Portugal or France. It depends where we get the best setup in the region. We have opportunity in the south of Europe to make the third plant.

The fourth plant we will do in Eastern Europe. We don't know until today if it will be the Czech Republic, in Poland or in Slovakia. We are discussing with partners, with governments, with the European Commission, where is the best place to find to install the fourth plant. On top, until 2030, we will make two additional plants. How this will come to financing, you will see the next chart will give you an idea. The volume in the area with the two, with the number 2, it's a new volume I'm discussing and telling to you. This is the volume we need, 240 gigawatt hours. We are in discussion how much you need to in-house and what we can do with external key suppliers. The first two plants, Sweden and Salzgitter, are matching perfectly in our planning round until 2025.

As you have seen, 2025 will be Salzgitter. What will happen after? This we are in deep discussion. We have our strong financial targets we stick to. I f it's statistically necessary to increase our engagement in battery cells and battery manufacturing, we are able, we are capable to expand that inside our financial numbers. Next, in the next months to this issue. We need a circle of the Volkswagen Group, the government, and the external parties. This will our future success. We cannot make everything by our own. We don't like to do everything by our own. We do it if it will be necessary. Little bit back, down to earth, costs. We explained to you about chemistry, about supply chain, about production, and I told you we will achieve a 50% decrease of cost in the entry segment, in the volume segment, 30%. Where it comes from?

15% will come from the cell design. 10% will come from the production process. This is a dry coating process. 20%, the major part, is from the raw material inside the cell. 5% will be the battery system concept as cell-to-car, cell-to-pack. These are the, this is the split how we will achieve the 50% or the 30% as we had shown to you. The key takeaways out of the first session. We as Volkswagen, we have a clear technology roadmap. We know that we will achieve with a unified cell 80% of product portfolio. What is the base for everything? On top, the 20% can be cylindric, prismatic or pouch. We can define it because 80% are our baseline.

We achieve the cost targets to be on the competitive level. In the last days and weeks, you have read a lot of information from the external analysis confirming that we are actually today competitive, and we will improve it further. We install the closed loop responsibility to speed up every activity for the cell. We have a really, really solid localization plan for the top two plants in Sweden and Salzgitter, and other ones will come soon, until 2030. This was the first session about cell and battery system. Let us look a little bit on the second pillar. The second pillar is charging and energy. This is also really important for set up and rollout for electric cars. The top three reason not buying a car, among the top three reasons are not buying electric car is always charging infrastructure.

It is inconvenient, it is occupied, it is defect.

We had a lot of questions to answer. On top, you see different charging situations worldwide. A small picture here on the screen. You see we have in the city, we have out of the city, we have on the streets, we have private, we have public, so we have a lot of different charging processes for a customer. It is not only Europe we need looking for. We be looking also for the other countries and continents. We look for China, we look for States. To give you a small idea what we are looking for, I like to talk a little about China. China, 1.4 billion population. We have a lot of cities, big cities in China. I am really curious to see what our colleague in China, Mr. Stephan Wöllenstein, his colleagues, can tell us about China. Stefan.

Stephan Wöllenstein
CEO, Volkswagen Group China

Hello, Germany. Greetings from China. In 2019, Volkswagen Group declared its Go to Zero strategy. Just last year, President Xi Jinping announced that China aims to achieve carbon neutrality before 2060. Both parties, Volkswagen Group as well as China, are clear that e-mobility will be the key to realizing this. The NEV segment is now the fastest growing segment in China, with deliveries estimated to be about five million by 2025. In early preparation for this, we have planned production capacity for our pure electric MEB platform up to 600,000 vehicles per year. By 2025, our local MEB production will include 15 models across various brands, with 35% of Group China portfolio forecast to be electrified models by then. We aim to achieve 1.5 million NEV deliveries annually.

To support this need, we are setting up two pure electric companies with a majority shareholding, thus fully embracing China's opening up policy. Volkswagen Anhui will start production by 2023, followed by the Audi FAW NEV Company, with the first vehicle rolling off the production line in 2024. As of today, until the end of the decade, we will ramp up deliveries of battery electric vehicles to reach over two million sales per annum. This means by 2030, we will have a Group pure electric car park of about 12 million units in operation in China. Looking at these numbers, it is quite obvious that in order to succeed with e-mobility, it is pivotal to cater for comprehensive charging infrastructure which provides easy, convenient charging for our millions of BEV customers. How do we evaluate today's charging infrastructure in China?

My colleague, Xu Peng, will give you a quick overview of the current status.

Xu Peng
Director of Technology Strategy, Volkswagen Group China

Thank you, Stefan. Charging and range anxiety are definitely the top two factors that inhibit customers in China from currently buying electric car. Our market research shows that about 50% of Chinese car buyers consider charging to be inconvenient and time-consuming. Almost 50% of potential customers consider driving range to be insufficient compared to internal combustion engine vehicles, and very important when judging about any charging infrastructure. 40% of people in China cannot install a private charging facility, meaning a wall box where they live. The Chinese government is for sure investing heavily in charging infrastructure. Starting around eight years ago, China's charging infrastructure began to see steady growth, and by the end of 2020, around 800,000 public charging spots had been installed across the country.

Despite being pretty impressive, this growth figure does not tell the full story, and this is still not enough to unleash the full potential of the electric era here in China. During our regular testing of public charging spots in the Chinese market, we have found out around 80% of charging spots are still fitted with slow-charging AC ports. Over 30% of charging spots are routinely occupied by non-electric cars, and up to 30% of charging ports are defective, either due to lack of maintenance or because of outdated technology. From a user experience perspective, this translates into a success rate for charging as low as 30%. This means that out of 800,000 potentially available public charging facilities, less than 300,000 really serves electric vehicle users. Understandably, this creates frustration among customers with a knock-on effect on potential new buyers.

As for home charging, while most OEMs provide a wall box, as we do at Volkswagen, there are still major challenges when it comes to installation. For a start, incorrect installation, a lack of proper maintenance are common. The bigger issue, however, is that many owners in China do not have their own parking spot. This has resulted in a low installation rate of around 40%. From all the facts, you can see that charging is still a challenge, including here in China, currently the biggest electric vehicle market in the world. W e at Volkswagen are determined to convert this challenge into opportunity for our BEV offensive and our China business. Ladies and gentlemen, my colleague, Thomas Müller, is just the person to explain how exactly we're planning to do this. Thomas?

Thomas Müller
EVP of Group Research and Development, Volkswagen Group China

Thank you, Xu Peng. Ladies and gentlemen, to tackle all these issues, we formed a charging provider joint venture in 2019 named CAMS, Charging as a Mobile Service. CAMS was formed by Volkswagen Group China, longstanding JV partner FAW Group, JAC, and StarCharge, China's current number 2 charging provider. With CAMS, we aim to make Volkswagen Group the most EV-ready and EV-enabled car company in China by confronting the problems outlined by Xu Peng. Through CAMS, we offer everything our BEV customers need, from home-based wall boxes to a highly competitive network of public charging stations with fast DC charging. Let me give you a quick overview of how a customer journey looks like with CAMS public charging service. Entirely consolidated into one app, it takes just one click to reserve the charging port 30 minutes in advance.

Upon arrival, the charging port smart lock will allow the customer access via the app or by scanning a QR code. Then simply Plug and Charge. While the car is charging, the app will make nearby recommendations of restaurants, shopping malls, and other places to visit. Once charging is completed, payment will happen seamlessly through the app's prepaid account. Ladies and gentlemen, that's what we call worry-free, first-class charging. The first 40 superchargers are already installed in Beijing, Shenzhen, and Chengdu, with charging power ranging from 120- 180 kilowatts, so highly efficient and fast, meaning convenient. In total, we already have 255 charging stations with 1,800 charging ports, but we do not stop here. As the first ID models from Volkswagen are just finding their way into customer hands, we are massively expanding our charging service network in 2021.

We aim to have over 500 charging stations and more than 6,000 charging points in China within this year and achieve full coverage in eight cities. With this level of coverage, we will have a highly competitive charging network in place, catering for approximately 80% of the Chinese NEV market. Come 2025, CAMS plans to have expansion in excess of 17,000 charging points, with 120 and 180 kilowatts, and high-power charging greater than 300 kilowatt power, covering most of the cities in China. To give a better impression of what CAMS charging in China looks and feels like, let's join Stephan Wöllenstein experiencing our CAMS charging journey.

Stephan Wöllenstein
CEO, Volkswagen Group China

Ladies and gentlemen, as you just saw, CAMS will not only support our e-mobility strategy by ensuring the framework of necessary conditions for our customers, but will also provide them with a first-class, easy charging experience. For us, CAMS provides even more.

It represents new business opportunities, and they are profitable ones. We target to break even in four years, seeing payback within nine years. I hope that from this short overview of our charging offensive in the Chinese market, we have demonstrated how we at Volkswagen are turning a challenge into a self-sustaining business opportunity. Thank you. We hope you are electrified. Now, back to the colleagues in Wolfsburg.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Stephan Wöllenstein and team in China. Big story. 17,000, 17,000 charging stations only with CAMS in China until 2025. This is big.

What we are doing on the other side of the world. Let us go to the U.S. 320 million inhabitants, big cities also, and over one million EVs in the U.S., so we need a charging structure.

Giovanni Palazzo
President and CEO, Electrify America and Electrify Canada

I am very excited to join you today. I am Giovanni Palazzo, President and CEO of Electrify America and Electrify Canada. I am speaking to you from our Center of Excellence here in Virginia. I would like to share a bit of background on our companies and our effort to assist in the global movement to advance e-mobility across the U.S. and Canada. With an investment of $2 billion, Electrify America is the largest open DC fast charging network in the U.S., serving all models of electric vehicles on the market today. Since opening our first charging station in May 2018, we have installed on average four stations a week, and we are accelerating that unprecedented rate of deployment each and every week. Right now, we have more than 560 charging stations in operation, and we expect to have about 800 stations open by the end of 2021.

Our reach in both countries extends to 45 states in the U.S. and four Canadian provinces, but we plan on further expansion. We are delivering on our commitment to support zero-emission vehicle adoption through a network that is comprehensive, reliable, customer friendly, and dedicated to providing advanced technology solutions. We know our charging networks are helping to advance the U.S. and Canada to a clean, zero-emission vehicle transportation system. I am very proud to say Electrify America continues to rank number 1 in quality and customer satisfaction. Even with our rapid network expansion, quality remains top priority. In fact, the network was named the 2020 Best in Test award winner for EV charging by two independent organizations. A great recognition for our quality and of course for our strong team. Our history, years of testing and learning, have placed us at the cutting edge of electric mobility.

We lead through innovation. Much of the fast charging technology you see across the market today was pioneered by Electrify America. For example, we have the most powerful network with charging speeds up to 150 and 350 kilowatts. We have developed innovative and customer-focused technologies like Plug and Charge. The customer simply connects the charger to the EV, and it starts. No credit cards, mobile phones, or membership cards needed. There is so much more to our story, but right now, I would like to close by saying we are proud of our work in expanding the EV charging network, and we look forward to the next chapter of our company's future.

Our investment of $2 billion is the largest ever for public ultra-fast charging in North America, and we are absolutely committed to expanding the Electrify America and Electrify Canada charging networks to help move us to a zero-emission vehicle transportation system. We are confident this commitment will pave the way for more electric vehicles in North America. Thank you, and now back to Wolfsburg.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Thank you, Giovanni. I really like to use this special minute to say thank you, thank you, thank you, Giovanni and his team. Because what you see here, the 3,500, it's 21. It's 3,500 charging points, fast charging points, existing charge fast points in States. This is a perfect job, and I am really curious, Giovanni, to see more from your team, to hear in the next week and months your great boost plans you are expecting to do in the next months for the States. Congrats again for you and your team. After China and States, back to Europe. What we will have in Europe today and tomorrow? We have a huge population, about 500 million people. We have big cities, and we have more or less three million EVs. We need also a charging structure.

It will be a complex story because we have different nations, different needs, different locations. How we handle that, you can see in the first step this nice film from my colleague, Oliver Blume from Porsche, is taking care about IONITY. Let us see what IONITY is doing.

Oliver Blume
Chairman of the Executive Board, Porsche

Thanks, Thomas. Electromobility is a key topic for Porsche. By 2020, one third of all new cars that we supplied in Europe was electrically powered. Our aim is to make this over 80% worldwide in 2030. Therefore, fast and convenient charging is a basic request. Driving and using only electric power without any worry about range. That was a goal of IONITY in Europe when it launched in 2017 as a joint venture between BMW, Daimler, Ford, and Porsche for the Volkswagen Group. IONITY is now represented in 20 European markets. On average, we have put a new high-power charging station into operation every three days. Contracts with more than 40 location partners have ensured rapid expansion of the IONITY network along the most important routes across Europe. Around 21 gigawatt hours of electric energy have already been charged at IONITY stations so far.

This energy has made it possible to cover more than 100 million kilometers on electric power alone, and this is entirely carbon neutral because IONITY exclusively uses sustainable generated green electricity. IONITY today operates the largest open high-power charging network in Europe, and it is the only charging network in the world with 100% charging power up to 350 kilowatts. T his is only the beginning. IONITY will further develop and optimize its network of high-power charging stations so that charging becomes even more convenient. An IONITY charging station every 150- 200 kilometers from Spitsbergen to Sicily means that the company has achieved an important milestone. The network will soon include more than 400 charge parks. In the period up to 2025, the joint venture will focus on four main areas. First, a better charging experience for customers.

The charge parks will be made even more attractive through the construction of roofs and additional service offerings. Second, we are expanding the sites that are already particularly busy. Third, a more dense network. Plans include increasing the number of charging stations across all markets. The last main area is growth. IONITY will expand to additional markets, starting with Poland, Portugal, and Estonia, which are about to go live. Regardless of where or how Porsche customers want to charge their electric cars in future, we will offer a solution. Home charging is Porsche's comprehensive product range, offering convenient charging for our customers. Dealer charging describes the equipment at all Porsche centers with high-power charging hardware. We want to provide fast charging with up to 350 kilowatts at our dealerships, more than 300 already do. Destination charging already lists 1,800 charging points at premium partners worldwide.

These include exclusive hotels, restaurants, golf and tennis clubs, and the network is constantly expanding. With highway charging, Porsche will supplement the IONITY network with its own high-power charging facilities provided for our customers. We are currently working on the details of this concept, which is to set up Porsche's charging stations along the main European traffic routes and motorways at locations that are particularly popular and highly frequented. We will select locations that are especially attractive, so that customers can be sure of the most comfortable and fastest long-distance travel experience possible. Each station will have between six and 12 charging points. The plan is to provide a charging capacity of 350 kilowatts or more. The unique design of these stations is of great importance, so that customers can appreciate the special character. This includes a simple approach with cell phone entry and exit options.

The charging process can be started conveniently, regardless of where the car is parked. The high-quality lounge areas offer innovative self-service facilities to ensure a pleasant stay during the charging process. The charging area will be covered so that our customers enjoy optimum protection in all weather conditions. The concept will supplement the IONITY network. The aim, genuine added value based on a Porsche charging experience for Porsche customers.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Thank you, Oliver. As the videos have already shown, building up charging infrastructure is teamwork. We want to take it serious and want to ensure that missing high-power charging infrastructure is no longer a reason not switching to electric vehicles. Today, the Volkswagen Group announces a real big boost program. By 2025, we will expand public fast charging points by a factor of five. In concrete numbers, more than 18,000 charging points we will install with our partners in Europe. We are partnering for success, and we believe that this will accelerate e-mobility to a new level. We start now with our first partner, Enel.

Speaker 16

We think that the cooperation between industries, in particular between the automotive industry and the electricity industry, is fundamental in order to drive growth of this new way of mobility based on electricity. This cooperation needs to go deep into all the technological aspects of the charging infrastructure and the charging systems aboard the cars. Through this, we will be able to fully decarbonize a very important segment of the transportation industry, and so we are very focused on cooperating with the industry of automotive manufacturers around the world. We have a very deep cooperation with the Volkswagen Audi Group. The first cooperation area in which we are working is, of course, the charging infrastructure. We are shareholders of Hubject together with Volkswagen. Hubject is a company that has an aim to offer to all owners of electric cars a seamless experience in charging across different platforms.

It's, if you want, a platform or platforms in which charging experience can be easy and very broad across different countries. For us, Hubject is a very important endeavor. We, in addition to that, are offering to We Charge, which is a charging initiative, Volkswagen, full access to all the Enel X charging infrastructure in Italy, and soon we will open the Spanish infrastructure to the same organization. We are cooperating with the Volkswagen Group in the charging infrastructure at this very moment in all possible aspects. The importance of the high-power charging is critical for the development of electrical mobility. High-power charging is any charger that has a power rating that exceeds 100 kilowatts.

This is something that we are focused now to work on all the networks in which we have a presence, because it is an infrastructure that lacks presence widely in Europe and around the world. It's a big missing gap on which we need to focus in order to bridge this gap. We made a study with the Volkswagen Group on the country, on Italy. As a following result, we established that looking at the circulating fleet of about five million electricity-driven vehicles by 2030, the public infrastructure network of Italy needs to be strengthened, and it needs to become denser. Also, we know that we have to be prepared for a continuous change in the technology, because the evolution of the technology during these 10 years will be pretty important.

The study also indicates that the high-power chargers need to be present within urban cities, urban territories, so within the centers and the surrounding areas of the cities. They need to be present along the routes used by commuters, and they need to be present in high-transit highway. The aim is that this is a facility, the high-power charger, that is targeting people that do not have the convenience of having a charger at home or a charger at destination in the office or where they work, so they need to charge on the road. This cannot take a long time. We are going now to establish a presence of HPCs in these areas of cities, commuting roads, and high-transit highways in order to enable people that have these needs to charge in a short time.

We have established Rome as the starting point for this effort. The first HPC center has been established on the 11th of March. Here in Rome, there are four 350 KV rating chargers. It's in Corso Francia 212. This has been inaugurated, and it's now ready to operate. I have to add that, for example, a high-power charger would charge a Volkswagen ID.3 in about 20 minutes. It's a very fast charging infrastructure for a car that is a medium-sized car, which is today having a big success on the market. It's a good moment to start putting down this infrastructure in Italy today.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Thank you, Francesco. Isn't that electrifying? This is a really perfect fit for Italy. We are sure that we can provide, with this partnership, our customers sufficient high-power charging in Italy, in and around the cities, commuting roads, and highways. Let's move to Spain. Here, SEAT and Volkswagen partner with the energy provider, Iberdrola. Buenos dias, Ignacio. The stage is yours.

Speaker 17

Hello, Herbert. Hello, our partners in Wolfsburg. Hello, everyone. It's a pleasure for me to be part of this Power Day. What we are celebrating is not just a day, it's a new era. The era of power of electrification. The 21st century will be the century of electricity, as the 20th century was the century of the oil, and 19th century was the century of coal. We all need to be part of this revolution. This is why green utilities like Iberdrola, who has been investing in renewables, networks, and energy storage for a century, are now joining forces with industry leaders of Volkswagen to accelerate the decarbonization of the economy. It's huge positive impact for the environment, equality, and biodiversity, and of course, for the economic recovery and the creation of million of sustainable jobs all around Europe.

Together, we have the technology, the skills, and the knowledge to create a more sustainable model for everyone. This strategic alliance between Iberdrola, Volkswagen, and SEAT is a very important step in this path. Together, we are creating new mobility hub, allowing more and more citizens to benefit from the advantage of electric mobility and circular economy. Therefore, it's a real pleasure for me to sign this agreement. It reaffirm Iberdrola's role in the energy transition, which has been leading for more than two decades, and it also reminds me my times in battery industry in Germany almost four decades ago, when I led Hagen Batterie AG in Soest. I ensure this partnership will serve as a platform for other strategic ventures in many other countries. I am looking forward to do it. Let's now sign this historical agreement. [Foreign language] Thank you very much.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Thanks a lot, Ignacio. This is in every respect a powerful performance and there's even room for a bigger story. Now let's move to the U.K. and announce our strong partnership with BP. We are already starting in 2021 an impressing program. We start in the U.K. and in Germany and will expand to all other countries BP is active. Please, Bernard, tell us more about it.

Bernard Looney
CEO, BP

Hello, everyone. I'm Bernard Looney from BP. It's great to join you for VW's Power Day. I'm just sorry I can't join you in person. By now, you'll have heard about the strategic collaboration we're working on with VW to expand ultra-fast charging across Europe. I believe it's a significant step. First, because this has the potential to be great news for consumers. More and more people want to drive electric vehicles, but people are also understandably anxious about range, about where and how to find charging points, about how long it takes to charge a battery. The world needs more chargers and it needs faster ones. This deal would help do both and give consumers a fast, convenient, and accessible charging experience.

By expanding BP's already large global charging network, a network we're looking to grow to 70,000 by 2030, they'd be able to go to a familiar site, often just a short ride from home, with welcoming staff, and where it's easy to plug in and charge quickly. While they're waiting, they can grab a coffee or pick something up for dinner. Second, this is potentially great news for the planet. It would make EVs much more accessible, helping VW to reach its ambition to increase sales of battery EVs over the next few years. By using as much renewable energy as we can to power these chargers, it would help BP deliver on our ambition to become a net zero company by 2050 or sooner and to help the world get to net zero.

Finally, this could be great news for VW and BP, as well as our investors. VW is one of the world's leading car manufacturers. We love what they do. We love how they are so focused on constantly making their cars and their technology better and better. We aim to do the same with our convenience and mobility services, so together we would be able to give drivers the best possible experience. For more than a century, we have helped our customers get around. We now have more than 10 million customer interactions every day across our 19,000 retail sites around the world. Because of that, we know our customers' needs are evolving and so must our business offer. That's why electrification is at the heart of our convenience and mobility strategy.

With this collaboration, both BP and VW can do what we do best, while also giving us the chance to learn from each other. There's plenty of reasons to get excited about this announcement. The one thing left to say is thank you to everyone at VW who made this possible. By signing this memorandum of understanding, we look forward to a long and productive future working together. Thank you.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Great message, Bernard. Thank you very much. I am also really excited about it. That is a great commitment. Nearly half of the overall program that we announced today will be provided by this partnership, so I am really happy that we have you on board. When we look at the overall boost program that we announced today, I want to point out some additional points. Regarding the sustainability, of course, all these charging stations will be provided with renewable energy. To ensure that our customers feel comfortable, we want to ensure that all charging points are Plug and Charge. You just plug in and you are charging. You do not need to care about cards or what have you. With the whole amount of 18,000 charging points that we now will install with our partnerships, there is no waiting, no searching, no worries any longer.

18,000, that means coming from 3,500 right now, that we really increase the high-power charging by factor 5. Factor 5, that is really amazing from my point of view. It is overall what we expect to be one-third of the overall infrastructure we need in 2025. I think this is really a commitment that we have undergone here. We have talked a lot about our charging infrastructure that we will install. Maybe we now have a look at the product that we as Volkswagen provide for that. Thomas.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Yes. Thank you, Elke. One of our products will be this nice guy here. What is the idea behind? This is if you have a garage, this guy will carry a battery pack behind him. Will it connect it automatically to a car and then charge the car, and afterwards he will take it back and recharge the battery pack. If it is nothing to charge, he will maybe clean the garage. This can be a next possibility. This is what we are bringing out in 2025, but as you told, we have a huge, and really strong, charging infrastructure program. What is our flagship product? This will be that one here. This is our flagship product, what we will roll out in Europe. This is an interesting technology because it is a battery pack inside. That means we are disconnecting the charging process from the grid.

What is in some countries a really big problem. Disconnecting it gives you a flexibility to put it on locations where you want. We have two DC charging points here on this. It is 150 kilowatt, power bank for a car. I am really happy that we started production, in China and in Hanover in parallel to support the strong plan you have been shown here. This is our flagship. On our end in home charging, we have our own company, Elli. It is coming up with a wall box like that one here, a smaller one for home charging. What is actually also in the market, you can see and buy it now. After that, what is the big story behind it coming to this trend? That is a V2D wall box. What means V2D wall box, Elke?

Can you explain us a little bit what is a wall box and what is the miracle behind that? Because we bring a new interface from the car to the house, but this is your part. You can explain it much better. Thank you, Elke.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Yeah, thank you. We've talked a lot about how we enable the energy transition by providing enough charging facilities. We have now seen the great products, but now let's change the perspective. Let's talk about the car becoming part of the energy system. F ar, the car fueled with gasoline was just useless while standing around parking, but now our battery electric vehicle will become a key element as a smart and digital charging device. PV generates more power than you need in your home, just store it in your ID. W hat you can see here is Elli. Thomas just already introduced our subsidiary for electrifying your life. W hat we do here is that we do with the data platform, we connect the intelligent home with the intelligent car.

We not only take into account the necessities you have in your home, but we combine it with the mobility patterns of the car. W ith that, we enable our customer to save money and of course, reduce the carbon footprint. The car as a mobile power bank. This becomes the game changer. Just imagine the possibilities of integrating a huge intelligent storage into the energy ecosystem. The idea of bi-directional charging is born. This is what Thomas just explained with our bi-directional wall box that makes it happen. In the near future, our electric cars will not only be capable to store energy, but also to provide energy. The MEB, our EV platform, will offer bi-directional charging in 2022. Bi-directional charging will enable car owners to become their own energy provider.

We will provide the brain, an intelligent home energy management system, connected via the cloud with the intelligent car. The sun is not shining, you need energy, just take it from your power bank. O f course, you don't have to compromise on your daily mobility. Taking an ID.3 with 77 kilowatt hours capacity, we will be able to power your complete house for more than five days, average daily driving included. Really cool. T he Volkswagen Group will not stop at this level. We want to scale up smart storage approach to fleets, condos, and industry. We will combine the local intelligence of the homes, condos, or industrial buildings with the global intelligence of the cloud. Combining our mobile power banks with the intelligent energy management system, using all relevant data, we will significantly reduce the need for grid expansion and therefore the cost.

We believe that this will significantly improve the carbon footprint and the energy bill. We've started the first pilot project already at a brand-new apartment complex in Wolfsburg. More than 1,000 apartments, with 3,000- 4,000 people living in it, provided with the latest smart energy system, powered by green energy from PV, equipped with 270 wall boxes and a local storage of two megawatt hours. By doing so, we will harness solar energy at its best. Now let's have a look at the national level. Today, PV and wind turbines provide a lot more green energy than the grid can absorb. Just as an example, in Germany in 2020, we lost a total of 6,500 gigawatt hours. Not kilowatt hours, not megawatt hours, 6,500 gigawatt hours by turning off wind turbines and PV due to missing storage capacity.

That's enough energy to charge and drive 2.7 million BEVs already. That's the whole vehicle stock of Hamburg, Berlin, and Munich together. We are not talking about not having enough renewable energy. We're talking about making use of the already existing energy we have. This is not only true for Germany, but all over the world. I mean, just have a look at the duck curve in California. We are currently wasting a lot of green energy, and I'm convinced we can do better, and battery systems are the right solution to do so. Why does this matter? A renewable energy system will need a lot of storage capacity to capture the wind when blowing, to capture the sun when shining. We at Volkswagen are ready to leverage our knowledge on a bigger scale to accelerate the world's transition to renewable energy with large-scale storage.

We can also improve our carbon footprint by reusing car batteries for big-scale storage. We will give the batteries a second and very useful life. As you can see here, big-scale storage is already an integrated part of the closed loop. It improves our carbon footprint, and it supports our Go to Zero 2050 strategy. Volkswagen has all it needs to play a vital role in the future energy system. We have deep insight into the mobility patterns of our cars, we have a profound understanding of energy markets, and we are directly connected with our customers and their cars. What we will do, we will integrate the cars as mobile power banks. We will focus on intelligent energy management, being it on home, on condo, or industrial level. We will integrate large storage system.

We will connect to the grid and renewable generation, and we will integrate all this via the Elli cloud, fully digital and data-driven. Volkswagen will become the bridge between the mobility and the energy domain, a win-win situation. Thomas.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Yes, Elke. Thank you. Thank you, Elke. Thank you for this impressive presentation.

Elke Temme
Head of Charging and Energy Business Area, Volkswagen Group Components

Thank you.

Thomas Schmall
Member of the Board of Management, Technology, Volkswagen Group

Let us have a small look. What are the key findings out of this second pillar, energy? We have a global boost plan for charging infrastructure, and we have presented to you today a huge program of partnerships. I am happy to have IONITY, Enel, Iberdrola, and BP close on our side. We will expand with these partners the fast-charging infrastructure, and we have local partners what is important to be fast. The car in the future will be part of the energy system of the house, of the private customer. Let us do the next step of the car. We are looking in investing and developing storage systems, small ones as charging infrastructure, for charging infrastructure, or big ones, as you have seen. This is important for us also as a second life opportunity for cells and battery systems from the first pillar. It is all cloud-based.

It is digital. It is the new world. It is the biggest transformation in the Volkswagen Group. That was the second pillar after the battery cell and battery system. Charging and energy are the main two pillars of the powerhouse of Volkswagen. We are really coming now to the end of this event. I like to thank you, the whole team, for the organization. It was a fantastic professional one in a record time. Thanks a lot for the whole team. I am really proud to be part of the power of 600,000 people of Volkswagen. That is the most impressive power you can imagine worldwide. We will do this. We will rock that. You will see in the next week and months a lot more of charging energy and cells and systems we are doing for the rollout of EV.

Our vision and our mission, with the right energy management and the intelligent storage systems, one day, charging will be for free. This is, we are working for. We are trying, shaping mobility for the generations to come. Every vision and mission starts with the first step. I would like to sign today the partnership programs for rollout of the infrastructure here on this desk from my side. Now I am really happy to welcome back on the stage Mr. Herbert Diess to sign that finally and give a strong commitment to the world where Volkswagen is transformation this company. Thanks a lot. See you soon, guys. Herbert, it is up to you. Come on.

Herbert Diess
Chairman of the Board of Management, Volkswagen Group

Many thanks, Thomas and team. We have talked about what is under the chassis, future battery technology, future cell strategies. Now let us take a look at the use cases for our technology. Today, our customers can buy all-electric cars across all segments, from volume to premium to sports cars. Ralf from Volkswagen, Markus from Audi, and Oliver from Porsche will now present the highlights to you.

Speaker 19

Higher than my dreams, keep rising up. I can feel my dreams keep closing in. Higher than my dreams, keep rising up.

Ralf Brandstätter
CEO, Volkswagen

Ladies and gentlemen, the ID.4, our first fully electric SUV, and after the iconic ID.3, our second electric car based on the MEB. Is not it a real eye-catcher? Athletic proportions, clear flowing design, short overhangings, and huge wheel base. With its striking body design, it offers spacious interior, displays, infotainment, and assist systems are cutting-edge solutions. It showcases our signature strength, developing innovative and highly desirable electric cars affordable for many. By the way, I have been driving an ID.4 myself since December, and wherever I go, this car turns a lot of heads. This week, the first ID.4 models have arrived at dealerships in the U.S. In Europe and China, we begin to hand over to customers next week. Now, the ID.4 starts a journey around the world, and we keep the ID.4 always fresh with the capability to be updatable over the air.

This year, we want to sell 150,000 units. Over its entire life cycle, we plan to deliver more than two million to customers. Therefore, this model is key for the profitability of our electric offensive. Further, its role is to scale fast our MEB platform, a USB made in Wolfsburg. Ladies and gentlemen, with our ID.4, we want to conquer. We want to electrify the compact SUV segment. This is the world's largest and still growing market segment. F ar, this compact SUV class is the home turf of the combustion engine. With our ID.4, we want to electrify it. Our ID.4 will redefine the SUV experience for our customers. They get all the benefits of an SUV, but silent, carbon neutral, and with a real electric punch. Switching to mobility has never been more attractive. The new ID.4, let's start its journey around the world.

Speaker 19

Higher than my dreams, keep rising up.

Markus Duesmann
Chairman of the Board of Management, Audi

Welcome back at Audi. As you can see by the models around me, for us, e-mobility is not a future vision, but reality today. Our e-models are an integral part of our lineup. Last year, we almost doubled deliveries of our battery electric models. We achieved that with the Audi e-tron, which delights more and more customers, and it was the global market leader in its segment in 2020. Launched by the end of 2018, the e-tron is our first fully electric car. Its electric all-wheel drive delivers great performance on any terrain. It was completed by the e-tron Sportback, a dynamic SUV model offering a range of up to 452 kilometers according to WLTP. This year, we will build on the success of those two models with new fully electric cars. First, the e-tron GT.

It stands for strong performance, high efficiency, and it's perfectly suitable for everyday use. My two personal highlights are the highly agile and adaptive air suspension. It supports both the dynamic drive and the excellent comfort level. Certainly, the electromechanical steering, it is sporty and direct, but also smooth and precise. The new one will be the Q4 e-tron, which we will reveal in April. The Q4 e-tron will be an entry model into the electric world of Audi based on the MEB platform. By 2025, we are planning to offer more than 20 all-electric models that we are now putting on the road year after year.

Oliver Blume
Chairman of the Executive Board, Porsche

100% electric, 100% dynamic, 100% fit for adventure. This is a new Porsche Taycan Cross Turismo. The Cross Turismo is based on the Porsche Taycan, our first purely electric sports car. in 2020, we delivered the Taycan, as planned, to more than 20,000 customers. It has already won more than 50 international awards, including the award for the world's most innovative vehicle. That's more than any other Porsche ever did during its first year on sale. The DNA of the Cross Turismo, uncompromising dynamics, a highly emotive driving experience powered by an innovative electric drive with 800-volt architecture. The performance figures speak for themselves, 0- 100 in just 2.9 seconds. Top speed, up to 250 kilometers per hour. Its range, according to WLTP, is up to 456 kilometers.

Thanks to a charging capacity of up to 270 kilowatts, 100 kilometers of range can be added in just five minutes. In terms of recuperation, the Taycan has been the benchmark right from the start. The Cross Turismo Turbo S can recuperate up to 290 kilowatts. This means that we have once more raised the bar. A high-tech off-road chassis with all-wheel drive and adaptive air suspension is standard. It rides 20 millimeters higher than the sport saloon. The optional off-road design package increases ground clearance even further by 30 millimeters. The two PSM machines and the two-speed transmission offer an additional advantage for off-road driving. They can be controlled with extreme speed and precision. This allows the driver to modulate power delivery very effectively, and the traction optimizing torque control ensures much better progress over light terrain and when setting off.

The Taycan Cross Turismo is the most versatile and practical Taycan we have ever built to date. It stands for mobility that is both sporty and sustainable, and it reflects the distinctive pioneering spirit that has always set the Porsche brand apart. That is something we are truly proud of. That's it for today from Weissach. It was a great pleasure to be part of the Power Day. Enjoy the rest of the show.

Herbert Diess
Chairman of the Board of Management, Volkswagen Group

We look forward to bringing our new technology into our new e-cars and into scale to Europe, to China, and to the United States. Our transformation will be fast. It will be unprecedented. The transformation will be bigger than anything the industry has seen in the past century. T hank you for joining us on our journey and bye-bye.