Volkswagen has created a new company called PowerCo that will be responsible for the Group's global battery business. The Group also broke the ground for its first cell factory in Salzgitter, Germany.
In addition to cell production, PowerCo will be responsible for activities along the entire battery value chain. Up to 2030, PowerCo is to invest more than €20 billion together with partners in the development of the business area, to generate annual sales in excess of €20 billion and to employ up to 20,000 people in Europe alone.
On the occasion of the ground breaking ceremony, the Group presented the concept of the standard factory for the first time; Salzgitter is to be a blueprint for cell factories throughout Europe and will set new standards in terms of sustainability and innovation.
Volkswagen also unveiled the prismatic unified cell announced at the Power Day in 2021. This allows the flexible use of a raft of different cell chemistries and will be used in up to 80 percent of all Group models. At Salzgitter, unified cells for the volume segment are to be produced from 2025 onwards. In future, the plant is to reach an annual capacity of 40 GWh – enough for about 500,000 electric vehicles.
By 2030, the Volkswagen Group intends to operate six cell factories with a total volume of 240 GWh throughout Europe together with partners. The new unified cell harnesses synergy effects and will reduce battery costs by up to 50 percent. The prototypes produced to date have demonstrated highly promising performance with respect to range, charging times and safety – essential prerequisites for a future industrial standard.