Volkswagen is looking to set up new electric vehicle & battery plants in US

• Volkswagen of America CEO Scott Keogh told on Wednesday that the company is “actively” looking to develop additional assembly and battery plants in the United States.
• Keogh refused to comment on probable locations for such activities.
• Currently, the German carmaker operates North American assembly operations in Tennessee and Mexico.

CHATTANOOGA, TENNESSEE — Volkswagen of America CEO Scott Keogh told on Wednesday that the company is “actively” looking to create additional assembly and battery plants in the United States.

Keogh refused to comment on probable locations for such activities. The electrification initiatives of the German carmaker are now based in Tennessee, including localized manufacturing of the VW ID.4 crossover EV, which is slated to commence later this year.

“We are actively in the process of looking at another production facility and also looking at a battery facility,” Keogh said in an interview.

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According to a company spokeswoman, Volkswagen is still considering and reviewing its alternatives, and no decisions have been taken.

Such facilities, whether new or expanded, would represent a big decision for VW, which now has North American assembly operations in Tennessee and Mexico.

Any investment would follow similar initiatives by other corporations to enhance EV production in the United States, which is a key priority of the Biden administration.

European media has speculated on the possibility of new VW electric vehicle factories in the United States.

Keogh’s remarks came just after the ceremonial launch of the German automaker’s new $22 million electric vehicle battery lab in Chattanooga, Tennessee, near its lone American assembly factory. It is part of a $7.1 billion commitment to expand its electric vehicle ambitions in North America.

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The new 32,000-square-foot battery facility will test and optimize batteries for the U.S. market. VW has announced four similar facilities throughout the world.