Volkswagen is on the verge of making a very dramatic decision for the future of the company. It’s thinking about investing close to $11 billion towards a massive battery factory, similar to what Tesla is using, but on an even larger scale. This investment would be to help Volkswagen push further into the electric vehicle market, and become one of the leading automakers in the industry.

volkswagen e golf
Volkswagen e-Golf

Will the Move Happen?

There’s no guarantee that Volkswagen is even going to go ahead with the decision. It’s just a good idea at this point and the automaker is considering making the move. Whether or not it actually happens depends on the board at Volkswagen. There’s a vote on the factory later on this month, and if that vote goes through the automaker will be pushing hard into electric vehicle technology, becoming a serious competitor for Tesla.

Why Even Bother?

There are plenty of good reasons to consider building such a massive facility for building batteries. The first and most obvious is the efficiencies of scale. Building a massive facility makes everything more affordable. It will enable the company to develop batteries for a fraction of the cost, something that’s very important to do when you’re producing electric vehicles. Having this capability means that Volkswagen can develop vehicles without relying on a battery giant like Samsung or Panasonic to do the work for them. That will save the automaker more money and give them more control over the final product as well.

The Ultimate Goal

The factory is all part of Volkswagen’s next big plan. According to the company plans are in place to try and sell about 1 million electric and hybrid plugin vehicles by 2025, a goal that Tesla plans to reach by 2020. That’s a significant figure for electric vehicles, but both automakers expect the market to expand and electric vehicles to become more affordable at the same time.

If Volkswagen does get a massive battery factory like Tesla, the automaker will soon be a household name for electric vehicles. It could even take over that industry with all the resources that it has to put towards research and development and production. It’s an exciting prospect for fans of the electric vehicle, and it’s not a bad idea for a company like Volkswagen looking to the future.