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Investment In EU-Backed Energy Transformation Fund Tpo Be Made By Volkswagen


11/04/2021


Investment In EU-Backed Energy Transformation Fund Tpo Be Made By Volkswagen
The German carmaker Volkswagen is set to invest in a fund that is backed by the European Union which was set up for jointly supporting startups dealing with the development and implementation of energy transformation technologies, as a part of the strategy of the company to broaden its going green strategy.
 
The largest auto company of Europe by volume, Volkswagen had earlier announced its target of becoming carbon neutral by 2050, announced its decision of the investment on Wednesday, stating that it had struck a strategic collaboration with EIT InnoEnergy, and with its investment, it would become a stakeholder in the EU-backed initiative.
 
This latest decision of the company is consistent with the initiatives it had announced previously, including the announcement in September of its intentions to establish its own 300 million euro ($348 million) venture capital fund targeted at investing in decarbonization projects and start-ups in the sector.
 
"The idea is simply ... to use InnoEnergy as an additional way to find interesting enterprises and support them in scaling up their business models," said Jens Wiese, Volkswagen's head of group M&A, investment advisory, and partnerships.
 
Volkswagen has already expressed its target of becoming the world's leading seller of electric vehicles by the middle of the decade and has announced plans for developing six huge battery cell plants in Europe with partners by the end of the decade.
 
A total investment of more than 560 million euros ($650 million) in over 300 companies has already been made by EIT InnoEnergy, which includes investmenta in the Swedish battery cell producer Northvolt, steel company H2 Green Steel, and lithium miner Vulcan Energy Resources.
 
EIT InnoEnergy, which is backed up by the European Institute of Innovation and Technology (EIT), also funds start-ups and businesses that are involved in the area of energy transition, de-carbonization, and away from the use of fossil fuels.
 
The amount of the investment it was making in the fund has not been disclosed by Volkswagen while also not saying anything about the size of the stake in EIT InnoEnergy, which includes Schneider Electric, TotalEnergies, Engie, and EDF as its owners. 
 
Volkswagen owns a fifth of Northvolt and, through its truck division Scania, has also invested in H2 Green Steel, whose investors include Mercedes-Benz, Spotify founder Daniel Ek, and Northvolt co-founder Vargas Holding.
 
(Source:www.


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