Operational Excellence (OPEX) Daily Briefing – Friday, December 19, 2025: Volkswagen Seeks External Funding for Battery Unit: Operational Pressure Behind Its EV Strategy.
Điểm Tin Operational Excellence (OPEX) Mỗi Ngày – Thứ Sáu, Ngày 19/12/2025: Volkswagen Tìm Vốn Ngoài Cho Mảng Pin: Áp Lực Vận Hành Phía Sau Chiến Lược Xe Điện.
Welcome to my unique weekday article for the paid subscriber-only edition.
Operational Excellence (OPEX) Daily Briefing – issued on weekdays (Monday to Friday).
Điểm tin Operational Excellence (OPEX) hằng ngày (phát hành các ngày thứ Hai đến thứ Sáu).
This is the bilingual post in English and Vietnamese. Vietnamese is below.
Đây là bài viết song ngữ Anh-Việt. Tiếng Việt ở bên dưới.
English
PART 1 – OFFICIAL INFORMATION
In December 2025, Volkswagen AG confirmed that PowerCo SE, its electric vehicle battery manufacturing subsidiary, is seriously considering raising external funding to support its plans to expand battery production capacity in the coming years. This information was officially disclosed by Volkswagen and reported by Reuters, as the group continues to implement its large-scale electric vehicle strategy across Europe and North America.
PowerCo was established by Volkswagen to play a central role in the group’s battery self-sufficiency strategy, with the objective of building and operating large-scale battery plants (gigafactories) to serve the group’s electric vehicle ecosystem. According to previously announced plans, PowerCo is responsible for developing battery factories in several strategic regions, including Germany, Spain, and Canada, in order to secure stable battery supply, control costs, and reduce dependence on external suppliers.
The consideration of external funding for PowerCo does not imply that Volkswagen is relinquishing control, but rather reflects a more flexible approach to financing projects with very high capital intensity. According to publicly disclosed information, Volkswagen continues to view batteries as a long-term strategic pillar, while at the same time acknowledging that initial investment requirements for battery plants are extremely high, particularly as the global electric vehicle market is growing more slowly than previously expected.
In recent years, Volkswagen has announced tens of billions of euros in investments for its electrification transition, including the development of electric vehicle platforms, software, charging infrastructure, and most notably the battery supply chain. Batteries are regarded as the single largest cost component in electric vehicles and directly affect performance, driving range, and product competitiveness. As a result, control over battery operations is considered strategically critical to the successful execution of the group’s overall electrification plan.
However, the market environment during 2024–2025 has shown that electric vehicle demand in several major markets has grown more slowly than anticipated, while upfront investment costs for battery factories remain very high. This has created significant pressure on balance sheets, cash flow, and capital efficiency for automakers, including Volkswagen. In this context, considering additional financing options for PowerCo is viewed as a financial and operational management measure, rather than a fundamental strategic shift.
According to Reuters, Volkswagen stated that PowerCo is “actively examining” funding options, including potential partnerships with external investors or strategic partners. However, the group did not disclose details regarding transaction structure, ownership stakes, or specific timelines. Volkswagen emphasized that any funding arrangement would be assessed based on its ability to protect the group’s long-term interests and ensure the timely execution of key battery projects.
PowerCo is currently positioned not merely as a pure battery manufacturing unit, but as an integrated component of Volkswagen’s electric vehicle operating ecosystem. The battery plants developed by PowerCo are designed to serve multiple brands within the group, including Volkswagen, Audi, Porsche, and others, in order to achieve economies of scale, standardize technology, and optimize operating costs.
The consideration of external funding also reflects the reality that the battery supply chain represents one of the most volatile and risk-intensive segments of the electric vehicle transition. Raw material prices, battery technologies, government support policies, and market demand can all change rapidly, directly affecting investment performance. In this environment, sharing capital burdens with partners or investors may help Volkswagen increase financial flexibility and reduce short-term pressure.
Volkswagen reaffirmed that its overall electrification strategy remains unchanged. The review of funding options for PowerCo is framed within portfolio investment management, aimed at balancing long-term ambition with short-term operational realities. The group continues to regard batteries as a core competitive factor, while recognizing that financing structures and implementation approaches must be adjusted to align with current market conditions.
From an official information perspective, this move indicates that Volkswagen is approaching its battery business with greater capital discipline and operational caution, rather than pursuing expansion at any cost. The consideration of external funding for PowerCo reflects an effort to maintain progress on strategic projects while controlling financial risk during a period of electric vehicle market adjustment.
At the information level, Volkswagen’s consideration of external funding for PowerCo represents a transparent management decision, driven by the capital-intensive nature of battery investments and changing electric vehicle market conditions. This provides the factual foundation for further analysis of OPEX, capital governance, and execution capability in the sections that follow.