Volkswagen Bets on New Battery Tech to Compete in EV Market
Volkswagen is investing in two emerging battery technologies, sodium-ion and solid state, to challenge Tesla and BYD’s dominance in the electric vehicle market. The German automaker delivered 983,100 electric vehicles in 2025, representing 11% of its total production, lagging behind Tesla’s 1.6 million and BYD’s leading 2.2 million.
Volkswagen recognizes that battery technology is central to success in the EV sector and is working with Chinese partners to develop both sodium-ion and solid state batteries. The company increased its stake in Gotion High Tech to 33%, gaining access to sodium-ion battery development and production lines.
Additionally, Volkswagen’s PowerCo division has partnered with US-based QuantumScape to develop solid state batteries, with a licensing agreement allowing for the production of up to 40 gigawatt-hours annually. While China currently leads in lithium-ion battery production, Volkswagen hopes these new technologies will secure its position in the evolving EV landscape.
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