Volkswagen is set to take the 20% stake of Guoxuan High tech Co Ltd a Chinese Electric Vehicle battery company. Volkswagen is planning on for taking a step towards electrification as a world’s largest auto maker they are starting by taking over the lithium battery manufacturing company .
Guoxuan High tech company is a China-based company principally engaged in manufacturing lithium-ion powered batteries and electric transmission. The Company distributes its products within domestic market and to overseas markets aswell .
This offered deal will make first direct ownership of Volkswagen to the Chinese battery maker and it is expected to come as a Wolfsburg based automaker. Volkswagen has a huge motive of selling upto 1.5 million new EVs by 2025, the EV list also includes plug in hybrid cars.
With the purchase of stake, Volkswagen will become the second largest shareholder with 20% stake where as the founder of Guoxuan Mr. Li Zhen holds 25% . By holding on the stake the Volkswagen will get large plus point and will be heading towards direct competition with its rival Tesla as it is also has it manufacturing factory in China. We shall wait to hear about the upcoming new by Volkswagen so stay tuned.