Volkswagen to focus on US battery plant while it awaits incentives of ‘EU Green Deal’
Volkswagen Group is reportedly pausing previously laid out plans for battery plants across Europe as it awaits the EU’s response to the Inflation Reduction Act in the US, which could offer the Group up to $10.5 billion in incentives. For now, Volkswagen will continue it progress in choosing a location of a US battery plant while it awaits what sort of conditions and/or incentives will come into play in what is being called the “EU Green Deal.”
Unlike other German automakers currently at odds with the EU Commission over the impending ban on new combustion vehicle sales by 2035, Volkswagen Group has instead doubled down on electrification and even increased its sales targets for passenger EVs.
While it was still in the care of ousted CEO Herbert Diess, the Group outlined plans for six new battery gigafactories throughout Europe this decade, including a site in Skellefteå, Sweden through a joint venture with NorthVolt scheduled to open this year.
Last month, we covered news that VW Group sub-brand Seat would be revamping its production facilities in Spain to include a new battery facility for other Group EVs as well. Looking ahead, Volkswagen has been exploring the location of a battery plant for Eastern Europe but said last fall that it would not share a final decision until sometime in the first half of 2023.
With three battery plants under construction and four more planned, Volkswagen Group is reportedly pausing further development as it awaits the EU’s response the the US’ Inflation Reduction Act – enacted legislation the Group believes can offer billions of dollars in incentives.
Volkswagen to prioritize US battery plant for now
Financial Times reports that Volkswagen Group has put a pin in plans for its pending battery plant in Eastern Europe to focus on a separate facility in the US. The reasoning behind this decision is the estimated $10.5 billion the global automaker could receive in incentives by bringing EV battery production to US soil.
Although European automakers like Volkswagen were initially against President Biden’s massive $369 billion subsidy package to bolster local EV and battery production, many have come around now that they’ve learned the benefits at their disposal for shifting production stateside.
Last week, Volkswagen told EU officials it is expecting to claim between $9.5-$10.5 billion in subsidies and loans from the Inflation Reduction Act (IRA) over the lifetime of its pending North American battery plant. As a result, the Group is honing in its development focus on the US facility while it waits to see how the EU will respond with its own subsidies package in what is being referred to as the “EU Green Deal.”
The EU Commission has been toiling away on its own local subsidies for EV and battery production, but industry executives have said it hasn’t been able to compete with the benefits of the IRA so far. In fact, a senior executive present at a Commission meeting held in Brussels last week said, “It looks pretty bad. There was an absence of concrete measures.”
We should learn just how bad (or good) those measures (or lack thereof) are next week when the EU Commission publishes a Net Zero Industry Act in response to the IRA. Meanwhile, Volkswagen says it will be looking for “the right framework conditions” before committing to build any more battery plants in Europe.
No decision on the location of the North American plant has been made by Volkswagen Group yet, or at least not shared publicly. The Group’s newest brand, Scout Motors recently announced it will set up its production footprint in the state of South Carolina, where we may also see Audi EV production someday, although that has not been confirmed.
Either way, Volkswagen has already secured raw materials vital to EV battery production from the Canadian government and should be ready to go in North America when it chooses its future home for the battery plant.
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Massachusetts is launching a first-of-its-kind statewide vehicle-to-everything (V2X) pilot program. This two-year initiative, backed by the Massachusetts Clean Energy Center (MassCEC), aims to deploy 100 bidirectional chargers to homes, school buses, municipal, and commercial fleet participants across the state.
These bidirectional chargers will enable EVs to serve as mobile energy storage units, collectively providing an estimated 1.5 MW of new storage capacity. That means EVs won’t just be getting power – they’ll be giving it back to the grid, helping to balance demand and support renewable energy use. The program is also focused on ensuring that low-income and disadvantaged communities have access to this cutting-edge tech.
The Massachusetts pilot is one of the largest state-led V2X initiatives in the US and is designed to tackle key challenges in deploying bidirectional charging technology. By strategically placing these chargers in a variety of settings, the program aims to identify and resolve barriers to wider adoption of V2X technology.
Massachusetts EV owners and fleet operators enrolled in the program will get bidirectional chargers capable of both vehicle-to-grid (V2G) and backup power operations at no cost. Here’s what they stand to gain:
- No-cost charging infrastructure: Bidirectional charging stations and installation are fully covered for participants.
- Grid resilience: With an estimated 1.5 MW of new flexible and distributed storage assets, the program strengthens Massachusetts’ energy infrastructure.
- Clean energy integration: V2G technology allows EVs to charge when renewable energy is available and discharge stored energy when it’s not, supporting the state’s clean energy goals.
- Backup power: EV batteries can be used as backup power sources during outages.
- Revenue opportunities: Some participants can earn money by sending stored energy back to the grid.
Clean energy solutions firm Resource Innovations and vehicle-grid integration tech company The Mobility House are leading the program’s implementation. “With the charging infrastructure provided through this program, we’re eliminating financial barriers and enabling school districts, homeowners, and fleets to access reliable backup power,” said Kelly Helfrich of Resource Innovations. “We aim to create a scalable blueprint for V2X programs nationwide.”
“Bidirectional charging benefits vehicle owners by providing backup power and revenue opportunities while strengthening the grid for the entire community,” added Russell Vare of The Mobility House North America.
The program is open for enrollment now through June 2025. For more details, visit the MassCEC V2X Program webpage. A list of eligible bidirectional vehicles can be found on that page.
Read more: Cambridge’s new solar VPPA is the largest ever by any US city
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Compton, California, has unveiled 25 new electric school buses – the school district’s first – and 25 Tellus 180 kW DC fast chargers.
Compton Unified School District (CUSD) in southern Los Angeles County is putting 17 Thomas Built Type A and eight Thomas Built Type C electric school buses on the road this spring. In addition to working with Thomas Built, CUSD also collaborated with electrification-as-a-service provider Highland Electric Fleet, utility Southern California Edison, and school transportation provider Durham School Services.
Environmental Protection Agency’s (EPA) Clean School Bus Program awarded funds for the vehicles in the program’s first round. EPA also awarded CUSD funds for the third round of the program and anticipates introducing an additional 25 EV school buses in the future.
“I can’t stress enough how vital grants like these are and the need for continued support from our partners in government at the state and federal level to fund additional grants for school districts and their transportation partners that are ready to deliver and operate zero-emission buses,” said Tim Wertner, CEO of Durham School Services.
CUSD, which serves Compton and parts of the cities of Carson and Los Angeles, currently serves more than 17,000 students at 36 sites. The district has a high school graduation rate of 93% and an 88% college acceptance rate. One in 11 children in Los Angeles County have asthma, which makes the need for emissions-free school transportation that much more pressing.
Read more: Thomas Built Buses debuts its next-gen electric school bus
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After cutting lease prices by $200 this month, the Rivian R1S is now surprisingly affordable. It may even be a better deal than the new Tesla Model Y.
Rivian cuts R1S lease prices by $200 per month
Rivian’s R1S is one of the hottest electric SUVs on the market. If you haven’t checked it out yet, you’re missing out.
With some of the best deals to date, now may be the time. Rivian lowered R1S lease prices earlier this month to just $599 for 36 months, with $8,493 due at signing (30,000 miles). The offer is for the new 2025 R1S Adventure Dual Standard, which starts at $75,900.
Before the price cut, the R1S was listed at $799 per month, with $8,694 due at signing. The electric SUV now has the same lease price as the R1T, despite costing $6,000 more.
The 2025 R1T Dual Motor starts at $69,900, essentially making it a free $6,000 upgrade. At that price, you may even want to consider it over the new Tesla Model Y.
Tesla’s new Model Y Launch Series arrived with lease prices of $699 for 36 months. With $4,393 due at signing, the effective rate is $821 per month, or just $13 less than the R1S at $834. However, the 2025 R1S costs nearly $15,000 more, with the Model Y Launch Series price at $59,990.
Rivian is also offering an “All-Electric Upgrade Offer” of up to $6,000 for those looking to trade-in their gas-powered car, but base models are not included.
| Starting Price | Range (EPA-est.) |
|
| 2025 Rivian R1S Dual Standard | $75,900 | 270 miles |
| 2026 Tesla Model Y Launch Series | $59,990 | 327 miles |
To take advantage of the Rivian R1S lease deal, you must order it before March 15 and take delivery on or before March 31, 2025.
The 2025 Rivian R1S Dual Standard Motor has an EPA-estimated range of up to 270 miles. Tesla’s new Model Y Launch Series gets up to 327 miles.
Which electric SUV would you choose? Rivian’s R1S or the new Tesla Model Y? If you’re ready to check them out for yourself, you can use our links below to find deals on the Rivian R1S and Tesla Model Y in your area.
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