German motor vehicle manufacturer Volkswagen (VW) has announced that it has commenced construction of a new MEB (modular electric drive matrix) manufacturing plant in China, the world’s largest car market. The Anhui plant, which is going to be the German automaker’s third pure-electric vehicle manufacturing facility, is expected to be ready to start production by the middle of 2022. Production of electric cars is slated to start in the second half of 2023. According to the manufacturer’s claims, the new facility will have a capacity to produce 350,000 battery-powered EVs annually once it reaches full scale.

The new facility is being constructed under the banner of Volkswagen Anhui joint venture (JV), which is 75 per cent owned by VW and 25 per cent by JAC Group. The auto giant already has similar manufacturing facilities in Anting (SAIC-VW) and Foshan (FAW-VW).

Collectively, the three MEB manufacturing facilities will have a production capacity of 950,000 per annum, while the Chinese arm of the German auto giant aims to deliver up to 1.5 million New Energy Vehicles (NEVs) per annum by the end of 2025. It means, the manufacturer will have to make even more investments to achieve its goal.

The recently-started construction at VW Anhui includes repurposing and up-scaling of the already existing JAC plant and the setting up of a totally new body shop area, which will cover an area of 141,000 meter square. The total project area will cover around 500,000 meter square.

The new facility will incorporate numerous energy saving strategies, such as adoption of low energy consumption production equipment, as part of the company’s goal to reduce its overall carbon footprint.

VW Group China’s CEO Dr. Stephan Wöllenstein said, “Volkswagen Anhui is set to become a global hub for e-mobility innovation and a cornerstone of the Group’s decarbonization strategy. As China is the world’s largest single market for NEV vehicles, we need to strengthen our local competence, and Volkswagen Anhui is a significant part of it.”

The new manufacturing facility will be powered by green energy from the very start of production. The use of green energy to run the facility demonstrates the company’s commitment to reducing carbon emissions beyond its fleet.

Meanwhile, American car maker Ford Motor Co. is reportedly preparing to develop a second MEB-based electric model. The American manufacturer has already signed a deal to use VW’s MEB powertrain to produce a small electric SUV in Cologne, Germany.