‘Practically Unviable’ for Volkswagen to Build EV Batteries in High-Cost Europe
NOVEMBER 30, 2022
By Paul Homewood
h/t Dave Ward
Meanwhile China are laughing all the way to the bank!!
Volkswagen, the German carmaker that’s pledged to manufacture nothing but electric vehicles in Europe by 2035, now says it’s “practically unviable” to build the batteries they need domestically.
That’s according to Volkswagen CEO Thomas Schafer, who wrote on LinkedIn this week that “Unless we manage to reduce energy prices in Germany and Europe quickly and reliably, investments in energy-intensive production or new battery cell factories in Germany and the EU will be practically unviable.”
Don’t worry, Herr Schafer, I’m sure that Communist China would be more than willing and able to cover your needs.
It takes a lot of energy to produce a lithium-ion battery large enough to power a car or truck, and Europe’s high energy prices drive up the cost of making the batteries that were supposed to reduce costs.
Europe is enjoying record-high energy prices for a multitude of reasons.
One is the effect on markets of the Russo-Ukraine War. Another is American energy production, which has struggled to reach pre-lockdown highs [Corrected from an earlier, stupid mistake of mine]. Then there’s plain old inflation, driven by massive government money-printing to try and paper over the disastrous economic dislocations caused by unnecessary government lockdowns. (What government takes with one hand, it takes more of with the other.)
But left unsaid by Schafer, or really any other Europeans of any importance, is the high cost and intermittent availability of the “renewable” energy sources Europe has made itself so dependent upon.
Energy prices in the UK and Germany spiked this week as the winds died down and the wind farms stopped spinning.
Things are so bad in Germany that Berlin is preparing to impose a windfall profits tax on solar and wind generation.
Just wait until I tell you why.
Take a deep breath and try to wrap your head around this. Europe has been closing nuclear plants and subsidizing wind and solar. Now they’ll tax wind and solar in order to “fund a €54bn consumer aid package.”
Subsidized wind and solar are too expensive, so Germany will tax it to pay for consumer subsidies on wind and solar.
It takes a really big government to be that stupid.