Volkswagen’s battery subsidiary PowerCo said it would scale back production as demand for electric vehicles slows.

According to Reuters on the 6th (local time), Thomas Schmall, Powerco Group’s chief technology officer, announced plans for only one production line of the plant with a total capacity of 20 gigawatt hours at a staff meeting that day.

The plant has space for two lines, but only one is under construction and plans for a second line are on hold.

“This is a clear declaration of war on the plant’s workers,” a union spokesman said.

Workers fear the second line could be scrapped as part of the company’s broader cost-cutting efforts.

Reporter Eom Su-yeong boram@wowtv.co.kr