Volkswagen, Altech Advanced Materials, NIO: Global race for the best solutions in e-mobility and energy storage

Double challenge for VW: Billions saved and declining market share in Europe

Volkswagen is once again tightening its cost-cutting measures. Brand boss Thomas Schäfer is planning to save EUR 4 billion this year alone, primarily through staff cuts. Volkswagen is aiming to reduce personnel costs by 20% in administration. The Company wants to target older employees and make a "retirement offer" to around 1500 employees born between 1961 and 1964. The offer provides immediate retirement in return for a severance payment, which can amount to up to EUR 450,000 in individual cases. This would at least save the Company the current social security contributions that would have to be paid in the event of continued employment.

These measures are part of a large-scale savings plan that aims to achieve savings totaling EUR 10 billion by 2026. Management plans to identify further savings potential in the coming weeks and refine the savings program to achieve the ambitious financial targets.

The month of July was less encouraging for the Wolfsburg-based company. According to the European Automobile Manufacturers Association (ACEA), registrations for the Wolfsburg-based group fell by 2.2% compared to the same month last year. As a result, VW lost market share to competitors, particularly from Asia.

The decline is particularly evident in the electric vehicle sector. In July 2024, the number of new registrations of battery electric vehicles (BEV) fell by 10.8% to 102,705 units. The market share of BEVs fell from 13.5% in the previous year to 12.1%. Despite growth in Belgium (+44.2%), the Netherlands (+8.9%) and France (+1%), the sharp decline in Germany (-36.8%) could not be offset.

Structural change in Lusatia: 120 MWh battery plant by Altech promises triple-digit million turnover at Schwarze Pumpe industrial park

In the event of power outages, manufacturing industries and critical infrastructure facilities - such as hospitals and water treatment plants - rely on alternative power supplies. To this end, the German company Altech Advanced Materials is developing Solid-state batteries that are capable of supplying entire facilities with power permanently. In collaboration with the Fraunhofer IKTS Institute, Altech is building the so-called CERENERGY® battery.

This energy storage system is a ceramic solid-state battery for stationary energy storage based on common salt. It serves as temporary storage for renewable energy, supports grid stability, and also enables peak load capping. In this type of capping, power peaks are capped by means of load shedding. The solid-state battery storage system provides the necessary power during this phase. Applications for the CERENERGY® battery include industrial and charging infrastructure. The battery is cost-effective, environmentally friendly, recyclable, contains no critical substances, and is non-flammable.

The system is designed as a "plug-and-play" solution. So-called GridPacks enable easy installation, even in remote locations. Thanks to their stackability as a container design, the solid-state batteries minimize space requirements and increase in-house scalability.

A feasibility study for the planned 120 MWh plant in the Schwarze Pumpe industrial park in Saxony forecasts an annual sales potential of EUR 106 million at full capacity. The industrial park is developing into a key location for structural change in Lusatia and, in addition to Altech Advanced Materials, offers other innovative energy companies a locational advantage.

Altech's CERENERGY® project is currently in the financing phase and is expected to be completed in Q1/2025. The chances of further financing are good, as the federal state of Saxony is pumping EUR 50 million into energy storage projects, from which Altech Advanced Materials will also benefit.

In addition, federal subsidies of double the amount are expected for the Schwarze Pumpe industrial park. The total investment volume amounts to around EUR 800 million. The projects are expected to create at least 550 new jobs. The funding is part of the EU's "Temporary Crisis and Transition Framework" (TCTF), which supports the development of environmentally friendly industries. The federal and state governments share the aid in a ratio of 70:30.

Chinese car manufacturer NIO reaches milestone with battery exchange stations

The Chinese electric vehicle manufacturer NIO has reached a significant milestone today. The Company's 2,500th battery exchange station went into operation in China. The car manufacturer, which was launched in 2014, emphasizes functional design, intelligent driver assistance systems, and battery exchange systems. The concept is called Battery-as-a-Service (BaaS), where customers can subscribe to freshly charged batteries. Empty batteries can be exchanged for full ones at Power Swap stations. This guarantees that batteries are always up-to-date and safe. Thus, The Company focuses on an alternative to traditional electric vehicle charging and wants to offer its customers more flexibility. This addresses the biggest pain point for EV drivers: charging time.

NIO is also constantly expanding its network in Europe. The Company currently operates 54 charging stations on the continent. NIO has a particularly strong presence in Germany and Norway, where 18 stations are available in each country.

With 20,176 vehicles delivered, the Company exceeded the 20,000 mark for the fourth time in a row in August 2024. Compared to the same month last year, this represents an increase of 4.38%. Compared to July 2024, in which 20,498 vehicles were delivered, there was a slight decline. In total, NIO delivered 128,100 vehicles from January to August 2024. This corresponds to a growth of around 36% compared to the same period last year. With its BaaS service, NIO seems to have its finger on the pulse.

Volkswagen is struggling with declining market shares in the electric vehicle market. At the same time, the Wolfsburg-based company is implementing drastic cost-cutting measures. The planned savings of EUR 10 billion by 2026 and the staff cuts show the seriousness of the situation. In particular, the older members of staff are being targeted, with plans to offer early retirement along with a severance package. However, VW needs to rethink its overall strategy in the field of electromobility in order to remain competitive in the evolving automotive market. Altech Advanced Materials is showing great potential in the field of stationary energy storage with its CERENERGY® solid-state battery. With the planned 120 MWh plant and the support of public funding, Altech is strategically well-positioned. The implementation and market penetration of this technology will be decisive for the Company's future success. NIO's battery exchange system represents an innovative solution to one of the main problems of electromobility. The subscription model's battery exchange network demonstrates an innovative electric mobility approach. The Company addresses the needs of customers directly and could, therefore, have a decisive competitive advantage. Altech Advanced Materials and NIO appear to be particularly forward-looking. Both innovations address critical challenges in their respective fields and could significantly impact the future of energy supply and mobility. Volkswagen must first do its homework and streamline its corporate structures, especially in administration.