Volkswagen EV Battery Cell Production in Germany – 'Mission Salzgiga' (Salzgitter Plant)

Volkswagen is consistently continuing its e-mobility strategy: to kick off its battery offensive, the Group broke the ground for its first cell factory in Salzgitter in the presence of German Chancellor Olaf Scholz. Production will start in 2025. With immediate effect, responsibility for global battery business is to be held by the newly created company “PowerCo”. In addition to cell production, the new company 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.

PowerCo bundles global battery activities
The Volkswagen Group is bundling its global battery activities in the European company (SE) PowerCo. From Salzgitter, the company will, with immediate effect, manage international factory operations, the further development of cell technology, the vertical integration of the value chain and the supply of machinery and equipment to the factories. Looking ahead, further products such as major storage systems for the energy grid are planned. Following Salzgitter, the next cell factory is to be established at Valencia. Sites are currently being identified for three further cell factories in Europe. In addition to Europe, PowerCo is also already exploring the possibility of further gigafactories in North America.

PowerCo is to be managed by CEO Frank Blome and Board Members Sebastian Wolf (Chief Operations Officer), Kai Alexander Müller (Chief Financial Officer), Soonho Ahn (Chief Technology Officer), Jörg Teichmann (Chief Purchasing Officer) and Sebastian Krapoth (Chief Human Resources Officer).

Standard factory and unified cell enable rapid global rollout
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.

Standardization will not only cover equipment, buildings and infrastructure but also products, processes and IT. This way, factories that can rapidly be converted for further product and production innovations will be created. Each factory will be operated 100 percent on electricity from regenerative sources and will be designed for future closed-loop recycling.

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.

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Video Timeline
0:00 – Cell Labs
8:15 – Analytical Lab
11:37 – Electrical Testfield
15:04 – Robustness and Safety Lab
17:08 – Storage
17:48 – Dosing and Mixing
18:52 – Coating and Drying
19:39 – Longitudinal Cutting and Calendering
20:44 – Laser Welding, Enclosing and Filling
25:13 – Battery Recycling
33:20 – Factory Layout
35:26 – Construction Site

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