As part of an ambitious electrification programme that will see VW Group aim to develop and build more than 30 new additional electric vehicles by 2025, the company could also set up its own battery factory.

The huge volume implications of the strategy could take it in that direction according to remarks attributed to VW Group's CEO in the German press.

"If more than a quarter of our cars are to be electronic vehicles in the in the foreseeable future then we are going to need approximately three million batteries a year," Chief Executive Matthias Mueller told Frankfurter Allgemeine Sonntagszeitung. "Then it makes sense to build our own factory."

The company currently sources batteries from external battery suppliers for the electric vehicles it makes.

Tesla is creating a high volume 'Gigafactory' to make automotive drive batteries in the US that it claims will revolutionise the supply of batteries by dramatically bringing unit costs down. Other carmakers are also considering their electrification strategies as tougher CO2 and fuel economy standards come into force around the world. 

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