Microsoft and Amazon are facing more antitrust scrutiny. The UK’s Competition and Markets Authority (CMA) says it will investigate the cloud services market in the country to determine if companies are engaging in anti-competitive practices.

Amazon (through Amazon Web Services) and Microsoft are by far the biggest players in that field in the UK. Between them, they had a market share of between 70 and 80 percent last year, according to a report from media regulator Ofcom, which asked the CMA to investigate the market. Google is in third place with a relatively paltry share of between five and 10 percent.

Ofcom believes that competition in the market is constrained by a number of factors that make it hard for customers to switch suppliers or use more than one at the same time. A key issue is egress fees, which customers often have to pay to transfer their data to another service. "The cost of transferring data between rival providers can discourage customers from using more than one cloud provider and in some cases make switching more costly," Ofcom said in its report.

A lack of interoperability and portability can make it overly laborious for customers to configure their data and apps to work on different services, the regulator said. Discounts can also dissuade customers from using more than one provider.

Those factors give Microsoft and Amazon a leg up over the competition, Ofcom suggests. "Limits on the ability of customers to credibly threaten to switch away can reduce the competitive pressure on the market leaders, giving them a degree of market power," the report states. "If customers have difficulty switching and using multiple providers, it could make it harder for competitors to gain scale and challenge AWS and Microsoft effectively for the business of new and existing customers."

In addition, Ofcom notes that some cloud service providers have raised concerns over the business software licensing practices of some cloud players, especially Microsoft. "We have received submissions that say Microsoft engages in several practices that make it less attractive for customers to use Microsoft’s licensed software products on the cloud infrastructure of rival providers compared to Microsoft Azure," the report states. "The submissions allege that this limits their ability to compete for customers." The products in question include Windows and Microsoft 365. Ofcom says that Microsoft has disputed the veracity of these claims.

"We welcome Ofcom’s referral of public cloud infrastructure services to us for in-depth scrutiny," CMA CEO Sarah Cardell said in a statement. "This is a £7.5 billion [$9.1 billion] market that underpins a whole host of online services — from social media to AI foundation models. Many businesses now completely rely on cloud services, making effective competition in this market essential." The CMA plans to conclude its investigation by April 2025.

Microsoft and Amazon both say they'll work constructively with the CMA. Amazon took issue with Ofcom's claims, telling Reuters that the watchdog's conclusions were rooted in "a fundamental misconception of how the IT sector functions, and the services and discounts on offer."

The cloud has been a sticking point in another Microsoft-CMA tussle. The watchdog initially blocked the company's proposed $68.7 billion takeover of Activision Blizzard due to concerns that Microsoft would hold too much power in the cloud gaming market. Microsoft later pledged to sell cloud game streaming rights to Activision Blizzard titles to Ubisoft if the deal goes through. That concession, made as part of Microsoft's revised agreement, "opens the door to the deal being cleared," the CMA said in September. The regulator will make its final decision on the merger this month.

Let’s end the week with a bit of good news for our future as a species on this floating ball of dirt. Brimstone, a major player in the industrial decarbonization field, just announced that its decarbonized cement has passed a crucial third-party strength test, bringing the dream of net-zero construction one step closer to reality.

The company’s proprietary portland cement met the American Society for Testing and Materials' (ASTM) C150 standards for building products, indicating that it can do everything traditionally-made portland cement can do with regard to construction projects. This is a big deal, as portland cement is not some niche product, as it comprises 95 percent of all cement produced in the United States. Chances are, if you are in a building made from cement, you’re surrounded by ordinary portland cement (OPC).

Brimstone says the carbon-negative cement is identical in “all respects” to OPC, including performance, safety, and overall chemical composition. The only difference is that it wasn't manufactured using the conventional, carbon-intensive methods. The company also notes that its “strength, workability, durability, and compatibility with steel and other materials” make it an ideal choice to “build structures safely and efficiently.”

There are plenty of other alternative building materials out there, but this is actual portland cement, so adopting Brimstone’s product won’t force “millions of construction workers to get retrained to use a new material,” according to CEO Cody Finke. He also touts that the product will be “equal or lower cost to other options” and will “slash carbon emissions.”

Being as this is the same industry-standard portland cement used for over 150 years, the company won’t have to jump the usual regulatory hurdles when developing a new building material, with the company boasting “the same buildings, bridges and roads being built today can be built tomorrow without carbon.”

How did it manage such a feat? Conventional cement production involves heating limestone to ultra-high temperatures, which releases large quantities of CO2 embedded in the rock. Brimstone went with carbon-free calcium silicate rock, so there’s no CO2 to release. As a matter of fact, the process generates trace magnesium compounds that absorb pre-existing CO2 from the air, making this concrete carbon-negative.

It’s no secret that traditional cement is a major contributor to the world’s climate problem, as cement production accounts for 7.5 percent of global CO2 emissions and 5.5 percent of total greenhouse gas emissions. All told, the construction and real estate industries account for 40 percent of global carbon emissions, so this step toward net-zero construction could drastically reduce that number.

Of course, this is a brand-new manufacturing process and Brimstone’s cement has yet to be widely adopted by the industry. The company hopes to scale up production so they can sell its portland cement for the same price as conventionally-made materials. Brimstone’s constructing a manufacturing plant in Reno, Nevada and has already started negotiating with construction companies, real estate companies and various corporate partners. 

It's probably fair to say that when most people conjure images of the pharmaceutical industry, it's not often there's an association between the production of life-saving drugs and environmental decline. But according to one 2019 study by The Conversation, drug companies produce more tonnes of carbon dioxide equivalents per million dollars than the automotive industry. "By our calculations, the pharma market is 28 percent smaller yet 13 percent more polluting than the automotive sector," the outlet said of the state of the pharmaceutical industry in 2015. Put another way: drug companies need to reduce their carbon emissions for the health of the planet and everyone living on it.

Thankfully, a group of scientists from the University of Bath in the United Kingdom may have found a way for the industry to do exactly that. In a study published in the journal ChemSusChem, the team describes a process they created for converting β-pinene, a component found in turpentine, into pharmaceutical precursors that they then used to synthesize paracetamol and ibuprofen. Right now, most companies producing those painkillers use chemical precursors derived from crude oil. Turpentine, meanwhile, is a waste by-product the paper industry makes at a scale of more than 350,000 metric tonnes per year. The researchers say they also successfully used turpentine to synthesize 4-HAP, a precursor for beta-blockers, the asthma inhaler drug salbutamol and a range of household cleaners.

In addition to being more sustainable, the team's "bio-refinery" process could lead to more consistent drug costs for consumers since turpentine isn't subject to the same geopolitical pressures that can send energy and oil prices skyrocketing. However, a significant pitfall of the process in its current form is that it costs more to produce drugs with turpentine than crude oil. The team suggests consumers may be willing to pay slightly higher prices for more sustainable drugs, but let's be honest, when someone is sick or in pain, paying more for relief is the last thing most people want to do.

Korean companies LG and Hyundai are teaming up to build a new EV battery cell manufacturing plant in the US and have signed a memorandum of understanding to invest $4.3 billion in the project. The companies will each hold a stake of 50 percent in the joint venture, which will start construction on the new plant in the second half of 2023. Their new manufacturing facility will be located in Savannah, Georgia, where Hyundai is also building its first all-EV factory in the US. The battery plant is expected to be operational by 2025 at the earliest. After it starts production at full capacity, it will be able to produce 30GHWh of battery every year, which is enough to support the production of 300,000 electric vehicles.

LG and Hyundai are just the latest companies to invest in US-based battery manufacturing facilities over the past couple of years. Toyota announced in 2021 that it will build a battery plant in the country as part of a $3.4 billion investment, while Ultium Cells (GM's and LG's joint venture) secured a $2.5 billion loan from the Energy Department for the construction of EV battery facilities. More recently, Ford announced that it's spending $3.5 billion to build a lithium iron phosphate battery plant in Michigan. Lithium iron phosphate, which can tolerate more frequent and faster charging, costs less than other battery technologies and could bring down the cost of EVs.

Other companies could follow suit, seeing as the Biden administration is pushing to bring more EV and battery manufacturing to the US. Last year, it launched the American Battery Materials Initiative, which will give 20 companies $2.8 billion in grants in hopes of encouraging manufacturers to start battery production stateside and making sure that the US won't be heavily dependent on "unreliable foreign supply chains."

Hyundai and LG believe that the new facility can help create "a stable supply of batteries in the region" and allow them "to respond fast to the soaring EV demand in the US market." Hyundai Mobis, the automaker's parts and service division, will be assembling battery packs using cells manufactured in the plant. The automaker will then use those packs for Hyundai, Kia and Genesis electric vehicles. 

The Biden administration wants to impose a 30 percent tax on the electricity used by cryptocurrency mining operations, and it has included the proposal in its budget for the fiscal year of 2024. In a blog post on the White House website, the administration has formally introduced the Digital Asset Mining Energy or DAME excise tax. It explained that it wants to tax cryptomining firms, because they aren't paying for the "full cost they impose on others," which include environmental pollution and high energy prices. 

Crypto mining has "negative spillovers on the environment," the White House continued, and the pollution it generates "falls disproportionately on low-income neighborhoods and communities of color." It added that the operations' "often volatile power consumption " can raise electricity prices for the people around them and cause service interruptions. Further, local power companies are taking a risk if they decide to upgrade their equipment to make their service more stable, since miners can easily move away to another location, even abroad. 

It's no secret that the process of mining cryptocurrency uses up massive amounts of electricity. In April, The New York Times published a report detailing the power used by the 34 large scale Bitcoin miners in the US that it had identified. Apparently, just those 34 operations altogether use the same amount of electricity as three million households in the country. The Times explained that most Bitcoin mining took place in China until 2021 when the country banned it, making the United State the new leader. (In the US, New York Governor Kathy Hochul signed legislation that restricts crypto mining in the state last year.) Previous reports estimated the electricity consumption related to Bitcoin alone to be more than some countries', including Argentina, Norway and the Netherlands. 

As Yahoo News noted, there are other industries, such as steel manufacturing, that also use large amounts of electricity but aren't taxed for their energy consumption. In its post, the administration said that cryptomining "does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity."

Critics believe that the government made this proposal to go after and harm an industry it doesn't support. A Forbes report also suggested that DAME may not be the best solution for the issue, and that taxing the industry's greenhouse gas emissions might be a better alternative. That could encourage mining firms not just to minimize energy use, but also to find cleaner sources of power. It might be difficult to convince the administration to go down that route, though: In its blog post, it said that the "environmental impacts of cryptomining exist even when miners use existing clean power." Apparently, mining operations in communities with hydropower have been observed to reduce the amount of clean power available for use by others. That leads to higher prices and to even higher consumption of electricity from non-clean sources. 

If the proposal ever becomes a law, the government would impose the excise tax in phases. It would start by adding a 10 percent tax on miners' electricity use in the first year, 20 percent in the second and then 30 percent from the third year onwards. 

The PC market has been reeling for months, but it just got worse. Both Canalys and IDC estimate that worldwide computer shipments dropped between 29 to 33 percent year-over-year in the first quarter of 2023. That's a steeper drop than during the holidays, and this time none of the major brands escaped the worst of the downturn. Second-place HP escaped relatively lightly with a 24 percent drop in shipments, while fourth-place Apple felt the most pain with a drop of more than 40 percent. ASUS, Dell and Lenovo all took a roughly 30 percent hit.

The explanations may sound familiar. Customers are reluctant to buy PCs in a turbulent economy where inflation is running wild, and the pandemic-era boom in remote work is still winding down. People either can't afford new machines or already have ones that are good enough. There's no comment on why Apple struggled more than its peers, but it generally targets the high-end market and is more vulnerable to poor economic conditions. TechCrunch also notes that Apple's transition to in-house chips helped it avoid the tough times that Windows vendors faced in recent years, but that the honeymoon period may be over.

Analysts are optimistic. Canalys believes this is the worst drop the PC market will see in 2023, while both research groups expect to see recovery as soon as the second half of 2023. Old computers will be due for upgrades, including Chromebooks at schools, while businesses will update to Windows 11 systems. IDC also sees the slowdown as giving manufacturers a chance to move some production outside of China.

There's still a note of caution. IDC warns that the PC industry could be in for a "slog" if recessions continue into 2024. Although the sharpest declines may be over, it could take a long time for the market to bounce back. Don't be surprised if brands play it relatively safe with computers they know are likely to sell, rather than experimenting with unusual designs.

Mercedes-Benz is developing a new in-house operating system to power its next generation of electric vehicles. Announced today at an event the automaker held in California, Mercedes said MB.OS – short for Mercedes-Benz Operating System – will deliver enhancements in safety, automated driving and navigation.

The automaker is working with several partners to build its new software stack, including NVIDIA, Luminar and Google. Mercedes will lean on NVIDIA for the company’s software, data and AI expertise. The GPU maker's Orin chipset will also power the first generation of electric cars Mercedes builds based on its upcoming Mercedes Modular Architecture (MMA) platform. The automaker expects the first MMA EV to arrive by mid-decade.

Mercedes-Benz

As for Luminar and Google, the former will provide Mercedes with its LiDAR technology, while the latter will work with the company to build a branded navigation experience incorporating features from Google Maps. In the meantime, Mercedes is partnering with Google to bring the company’s “Place Details” data to all cars that sport the latest version of its MBUX infotainment system. You can use the integration to look up a local business, find out when it opens, and see photos of the inside and what other Google users have to say about it. Mercedes plans to open MB.OS to other partners as well, including TikTok, Zoom and even Angry Birds developer Rovio.

All MMA EVs will ship with the hardware needed for Level 2 automated driving. Mercedes is also working with NVIDIA and Luminar to offer Drive Pilot, a Level 3 automated driving system. The software will arrive later this year in 2024 EQS and S-Class models. Naturally, MB.OS will also enable Mercedes to deliver over-the-air updates, allowing it to add new features to existing cars.

The company isn’t shy about the fact that some upgrades may cost a one-time fee or come as part of a subscription package. In fact, Mercedes has already announced a handful of software bundles it will offer to owners of cars with MB.OS. MB.Connect, for instance, will bring together the company’s navigation, entertainment and communication features in one package. Other bundles, such as MB.Charge, will provide customers with priority access to Mercedes-Benz charging stations. The automaker says it will allow drivers to explore and buy upgrades for their Benz online, through the Mercedes mobile app and directly from the car.

“The company is confident that this strategic approach to software and hardware development will be the basis for lifetime revenues as well as additional contributions,” Mercedes said, adding it expects software revenue from bundles like MB.Connect to contribute “a low-to-mid single-digit billion euro figure” to its bottom line by mid-decade.

Elizabeth Warren is calling for more federal oversight of Big Tech. In a letter (PDF link) the Democratic senator sent on Tuesday, she asked the Federal Trade Commission and Department of Justice to look into Google, Apple and Amazon’s expansion into the automotive industry.

Warren claims the three companies are using their positions in mobile and cloud computing to become dominant players within the sector. “This expansion has potentially alarming implications for developers, workers, and consumers,” Warren states. She’s urging FTC Chair Lina Khan and Jonathan Kanter, the head of the Justice Department’s antitrust division, to act decisively before it’s too late. “As Chair Khan has written, ‘it is much easier to promote competition at the point when a market risks becoming less competitive than it is at the point when a market is no longer competitive.’ This market finds itself at exactly such a juncture,” Warren warns.

Specifically, the senator calls out the companies for employing “all-or-nothing” bundling tactics. As one example, she points to the terms of Android Automotive. Google’s operating system doesn’t come with Maps or Assistant included. To access one of those services, automakers must purchase a bundle that includes all of them. Warren argues that tactic allows Google to leverage its dominant position in one area to obtain market share in another. In this specific case, she suggests the company is using Maps to grow Assistant.

“These tactics are reminiscent of past Big Tech bundling controversies,” Warren states, drawing a parallel to cases like the Justice Department’s 2001 lawsuit against Microsoft. Apple and Amazon did not immediately respond to Engadget’s request for comment. “Carmakers choose to partner with tech companies to improve the experience for their customers,” a Google spokesperson told Engadget. "There is enormous competition in the connected car space – including Apple CarPlay, Amazon Alexa, Cerence, TomTom, ChargePoint and many others – and carmakers continue to invest in their in-house solutions simultaneously. At Google, our goal is to enable carmakers and developers across the auto industry to develop software solutions at scale.”

As Vox points out, automakers are partly to blame for the current state of the market. One reason platforms like CarPlay and Android Auto are so popular is that first-party options from car companies have historically failed to meet consumer expectations. In 2019, Ford paid $17 million to settle a class-action lawsuit related to its MyFord Touch infotainment system. The platform was known for freezing and crashing while in use.

Warren says ensuring there’s fair competition in the automotive sector should be a priority for the FTC and DOJ. “The FTC and DOJ don’t have to wait until there’s a problem to take action,” she writes. “Now is the time to prevent Big Tech from strangling competition in the automotive industry before it’s too late.”

Though primarily still known for its school buses here in the US, BYD has become China’s largest automaker with a one trillion yuan market capitalization (~$149 billion) — that’s bigger than Ford and GM’s market caps ($66.01B and $56.63B, respectively) put together. And while Americans were gearing up for Fourth of July festivities, BYD was quietly supplanting Tesla as the world’s most prolific EV automaker with the Shenzhen-based, Berkshire Hathaway-backed car company reportedly outselling Tesla in the first half of 2022 by 641,000 cars to 564,000.

BYD is one of more than 450 registered EV firms in China, all of which are competing for a slice of the world’s largest automotive market with future designs for the US and Europe as well. American ingenuity may have initially ushered in the EV era, but it’s been China’s relentless commoditization of the technology that has put the nation’s automakers at the forefront of the global electric vehicle race.

“Developing new energy vehicles is essential for China’s transformation from a big automobile country to a powerful automobile country,” Chinese President Xi Jinping said in 2014. “We should increase research and development, seriously analyze the market, adjust existing policy and develop new products to meet the needs of different customers. This can make a strong contribution to economic growth.” In China, so-called New Energy Vehicles (NEVs) are basically any plug-in electric (either hybrid or battery) which qualifies for financial subsidies from the government — specifically battery electrics, plug-in hybrids, and fuel cell EVs.

These efforts can also help China meet its Paris Accord carbon neutrality targets of a 20 percent reduction by 2035 and a 100 percent reduction by 2060 – lofty goals given it’s currently the world’s biggest emitter of carbon dioxide. These policies aim to reduce pollution in Chinese cities, reduce the nation’s reliance on imported oil, and “position China for global leadership in a strategic industry,” per a 2019 study by Columbia University.

The country’s central government has invested heavily over the past decade to spur growth in the NEV industry, leveraging a mix of policy, tax incentives and consumer subsidies. As of 2020, EVs must account for 12 percent of production for any company that manufactures or imports more than 30,000 vehicles in China (up from a 10 percent requirement the previous year). The government has also deeply subsidized consumers’ EV purchases with more than $14.8 billion since 2009, providing up to $3,600 for battery electric vehicles (BEVs) with more than 400 km range, though those rebates were first halved, then eliminated by 2021.

The government has also provided funding and standardization mandates for building out China’s charging infrastructure with a goal of 120,000 EV charging stations and 4.8 million EV charging stalls available by 2020. Local and municipal governments further incentivized EVs with discounts on licensing fees and preferential parking spots for NEVs.

Anadolu Agency via Getty Images

The plan appears to be working. Nearly 15 percent of new vehicle sales in 2021 (totaling $124.2 billion) were NEVs — that’s a record 2.99 million units and a 169 percent increase over the previous year, according to data compiled by the China Passenger Car Association (CPCA). Of the 6.75 million total EVs sold in 2021, itself a 108 percent YoY increase, Chinese EVs accounted for 53 percent of the global market. Including PHEVs, some 3.3 million electrified vehicles were sold in China last year, compared to just 608,000 in the US. What’s more, the China Passenger Car Association now estimates that another 6 million EVs will be sold in 2022.

The Chinese government anticipates EVs will achieve 20 percent domestic market penetration by 2025 and 60 percent by 2030. UBS Global has forecasted that three in five vehicles (60 percent) on China’s roads by 2035 will be electrified, up from the 1 percent they constituted in 2019. By 2027, the market is expected to reach $799 billion.

“Emerging China EV companies are making a concerted effort to target the premium end of the local market and eventually abroad,” Deutsche Bank equity analyst Edison Yu told Forbes in July. “We are already witnessing intense domestic competition in the mass market from Leap Motor, Hozon Neta, WM Motor, BYD and numerous sub-brands from incumbent OEMs (GAC/Aion, BAIC/Arcfox, SAIC/R-brand). Newer entrants have shown willingness to absorb deep losses to quickly gain volume share.”

The Chinese EV market is currently dominated by five firms: Tesla comes in third surrounded by domestic automotive manufacturers BYD (27.9 percent market share), SGMW (10.1 percent), Chery (4.9 percent), and GAC (4.2 percent). Geely, which owns stakes in Volvo, Polestar and Lotus, didn’t crack the top five but its various brands did manage a record 2.2 million worldwide vehicle sales in 2021. XPeng and NIO are additional noteworthy brands, totaling 98,155 and 91,429 sales in 2021, respectively.

At the Boao Forum in 2018, President Jinping announced a raft of sweeping economic reforms designed to further open the nation’s markets, including an announcement to phase out existing limits on foreign ownership of automakers. The Policy for the Automotive Industry of 1994 contained a key provision that banned foreign business entities from owning more than 50 percent of a joint venture with a Chinese firm as well as from participating on more than two such ventures for any single vehicle type sold in the country — the so-called 50%+2 rule. Jinping’s reforms will see the 2-venture limit lifted in 2022 and the restriction on ownership share eliminated at the end of 2023.

Xinhua News Agency via Getty Images

This regulatory relaxation could have immense impact on the Chinese EV market, potentially increasing competition for domestic OEMs from an influx of international automakers hawking additional NEV brands and models. The rule change could also see foreign firms renegotiate their ownership stakes, potentially even fully buying out their Chinese partners, though as Sino Auto points out, that isn’t likely to happen in the immediate future as the existing joint ventures have an average remaining contract length of 19 years. Overall, the policy shift should give international firms a more even footing with local Chinese automakers.

That’s not to say that local firms won’t still enjoy a number of advantages. For one, switching costs associated with transitioning from internal combustion to electric drivetrains are largely non-existent because for many Chinese consumers, an EV will be their first vehicle. The local automakers also have a better handle on what their customers want, offering tech-laden, customizable EVs at a variety of trim levels (starting at literally $4,300) to tech-savvy, price sensitive, middle-class consumers.

SOPA Images via Getty Images

International auto companies will need to tread carefully around any number of hot button topics, freedom and privacy concerns, should they choose to do business in China. GM and BMW, for example, recently became embroiled in a dispute over accusations of forced labor usage in lithium mining in the Xinjiang region. Beijing denied the allegations, characterizing the report as “nothing but ill-intentioned smears against China,” per Foreign Ministry spokesman Zhao Lijian in April. The US has since sanctioned individuals and companies involved in the Xinjiang operation. Lithium mined from the region is used in Tesla battery systems, among others.

Looking ahead, you’ll need to tilt your head back a bit as the Chinese EV market is expected to grow more than 30 percent by 2027. The government’s stringent emissions regulations and growing population are both expected to contribute to the expected demand growth. What’s more, “over the forecast period (2022-2027), the country may also witness growth in the adoption of electric buses,” a recent study from Mordor Intelligence notes. “More than 30 Chinese cities have made plans to achieve 100 percent electrified public transit in the near future.” That’s not even including the nation’s battery production capacity, which currently stands at roughly 59 percent of the global market. It too is expected to balloon 7.5 percent by 2027.

Aly Song / reuters

Given the robust domestic Chinese market, it may not be long before we see BYD or XPeng brands on American roads, much as they are on the streets of Europe. “I’d imagine it’s only a matter of time before we see more Chinese vehicles being sold in North America,” Morningstar analyst Seth Goldstein told Capital in February.

“Given that EVs are a new powertrain, this is an opportunity for Chinese automakers to establish brands in new geographies where, for years, with the internal-combustion engine, Chinese automakers tended to only sell vehicles in China,” he continued.

The question now is whether China can maintain its pole positioning. Just as Tesla was eventually overtaken by BYD despite enjoying a sizeable and lengthy initial lead, Chinese automakers find themselves in much the same position: on top of the heap, but for how long once the likes of GM and Ford come sniffing around with their deep pockets and expansive R&D budgets?

With supply chains still in disarray and the war in Ukraine wreaking havoc on EV battery component commodity prices, many forward-thinking automakers are scrambling to secure not only stocks of the valuable metals like cobalt, lithium and nickel that go into EV batteries, but also the means of of building the batteries themselves. On Thursday, Volkswagen Group held a groundbreaking at the site of its forthcoming EV battery cell plant in Salzgitter Germany and announced the formation of a new company, PowerCo, which will be responsible for handling the VW Group's burgeoning battery business. 

"Today is a good day for the automotive industry in Germany and Europe," German Chancellor Olaf Scholz said during the event. "Volkswagen is showing how the future of sustainable, climate-compatible mobility could look. Together, we are laying the foundation for shaping this future to a significant extent in Salzgitter."

PowerCo will handle the Group's global battery activities, from producing the batteries themselves to conducting R&D on new battery technologies to "products such as major storage systems for the energy grid," per the announcement. Once the Salzgitter plant is operational, PowerCo will begin work on a second factory in Valencia, Spain with an eye on three further cell factories in Europe and potentially North America as well. Each of the European factories will reportedly operate using 100 percent renewable energy. In all, PowerCo aims to open a total of six battery factories in Europe producing a total of 240 GWh capacity every year (~6 million electric vehicles worth).

Stefan Warter

Operations across the various production facilities will be highly standardized. Everything from "equipment, buildings and infrastructure" to "products, processes and IT" will conform so that the entire production process can be more readily adapted to future "product and production innovations," per the release.

(c) Sebastian Dorbrietz

The Salzgitter plant is expected to create 5,000 new jobs when it begins operations in 2025 with an annual capacity of 40 GWh (~500,000 electric vehicles worth). Some 20,000 positions are will need to be filled once the other European factories open, Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, said.