Construction begins on Volkswagen Group’s first battery factory

Volkswagen has laid the first stone of its new factory in Salzgitter (Germany), the first of the automobile group that will be dedicated to the production of batteries for electric cars.

Within the framework of this project, Volkswagen has launched its new PowerCo division, in which the group will encompass its battery-related activities globally. In the new plant in Salzgitter the group will produce batteries from 2025.

The company expects this new factory to reach a production capacity of 40 gigawatts per hour (GWh) per year, enough for some 500,000 electric vehicles. By 2030, Volkswagen intends to operate six battery factories, one of them in Sagunto (Spain), with a total volume of 240 GWh throughout Europe together with its partners.

Future giga-factory for battery cells at the Salzgitter site.
Future battery factory of the Volkswagen Group in Salzgitter (Germany).

From Salzgitter, the company will manage, with immediate effect, the operations of the international factories, the development of cell technology, the vertical integration of the value chain and the supply of machinery and equipment to the factories.

On the occasion of the inauguration of the factory, German Chancellor Olaf Scholz stressed that Volkswagen “is showing what the future of sustainable and climate-compatible mobility could look like”.

For his part, the CEO of Volkswagen, Herbert Diess, stressed that with this new plant the company marks a “strategic milestone”.

“The battery business is one of the cornerstones of our New Auto strategy, which will make Volkswagen a leading provider of the software-driven, sustainable mobility of the future. Setting up our own battery factory is a mega-project in technical terms.” and economical. It shows that we are bringing the cutting-edge technology of the future to Germany,” Diess stressed.

The group plans to produce other products in the future, such as large storage systems for the energy network. Likewise, the company has indicated that after Salzgitter, the next battery factory will be established in Valencia.

Volkswagen is identifying the sites of another three cell factories in Europe. In addition to Europe, PowerCo is also exploring the possibility of other gigafactories in North America.

The new PowerCo division will be led by CEO Frank Blome and board members Sebastian Wolf (COO), Kai Alexander Müller (CFO), Soonho Ahn (CTO), Jörg Teichmann (Purchasing Director) and Sebastian Krapoth (director of human resources).

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