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The government is negotiating with Volkswagen to build a battery factory

Volkswagen, which also includes the Czech carmaker Škoda Auto, announced on Monday that it plans to have six battery factories in Europe by 2030. He stated that one could be in the Czech Republic.

“We are discussing this intensively, it is linked to the ČEZ Gigafactory project, which I consider to be one of the priorities and a key investment in the coming years. We must not miss this opportunity, we are also following the link to lithium mining, although it is not a condition, but it would be an excellent chain. We want to make a decision this year, we are regularly informed by ČEZ and either me or people from the team of the Ministry of Industry are in negotiations with potential key investors in the emerging consortium, ”said HN Havlíček.

Last year, the Minister announced that CEZ Group was considering building a factory for lithium batteries for cars in northern Bohemia in the next few years, which he described as the Gigafactory project. Together with investors from the automotive industry, the company wants to use lithium from the Cínovec area in the Ore Mountains for the production of batteries.

“A partnership with a local manufacturer such as Škoda would be natural, but we cannot comment on such negotiations now,” said Pavel Cyrani, CEZ’s Vice Chairman of the Board, to HN.

Havlíček told the daily that the Czechia could provide direct support and tax benefits for the Volkswagen factory.

Petr Knap, a partner of the consulting company EY for the automotive industry, has previously stated that when considering these investments, in addition to tax incentives, labor costs and their qualifications, the investor will also look at the state’s support for electromobility. “And here in our country (in the Czech Republic) it will find a very below-average to negligible scale in the EU,” he said.

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