Volkswagen prepares battery division for capital markets

© Reuters. FILE PHOTO: Volkswagen Group CEO Herbert Diess arrives on the red carpet for the ‘Das Goldene Lenkrad’ (The Golden Steering Wheel) car awards presented by a German newspaper in Berlin, Germany November 12, 2019. REUTERS/Hannibal Hanschke / File Photo

FRANKFURT (Reuters) – Volkswagen (DE:) is preparing its battery unit for partial sale or listing and has agreed to turn it into a so-called European Company, or Societas Europaea, to provide the terms for such a move, CEO Herbert says Diess.

Diess, speaking after the automaker provided details of its new five-year investment plan, said the move was aimed at preparing the division for capital market activity, including bringing in partners external.

The CEO, who previously said the unit could go public independently, said Volkswagen’s battery division is expected to generate sales of 20 billion euros ($23 billion) by the end of the decade.

Volkswagen’s battery efforts, led by board member Thomas Schmall, include building six major cell factories with partners across Europe by 2030.

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