Volkswagen is still considering the possibility of publicly listing its battery business, following Renault's decision to cancel its plans for an initial public offering of its electric-vehicle spinoff due to market concerns.
Volkswagen's PowerCo unit, aimed at bringing battery production in-house, may eventually be listed on the stock exchange, the company confirmed on Tuesday. While global electric vehicle (EV) growth has been steady, it hasn't been as steep as anticipated. Furthermore, the company highlighted the volatility of raw material prices.
"We are open to exploring different capital structures and continue to assess our options in light of the market environment," Volkswagen stated. "Investor interest in our battery business remains high, and an IPO is a viable option in the future."
Renault, on the other hand, recently abandoned plans for an IPO of its electric-car business Ampere, citing an unfavorable equities market. Concerns around share dilution and EV demand had also been previously expressed by analysts.
Citing anonymous sources, Bloomberg reported that due to the deceleration in EV demand, an IPO for Volkswagen's PowerCo is unlikely to happen this year or next.
In April of last year, Volkswagen announced its commitment to maintaining "full flexibility" when it comes to securing external funding for PowerCo. However, no specific timeline for a potential listing was provided.
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