Volkswagen PowerCo starts construction of first cell factory in Salzgitter, Germany.
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Volkswagen launches a new battery company- PowerCo.

Volkswagen starts the construction of the Group’s first cell factory in Salzgitter, Germany, under the PowerCo brand.

Volkswagen Group sets a new milestone for itself with the launch of the new battery company PowerCo and the start of construction for the Group’s first cell factory in Salzgitter, Germany.

From cell production to the entire battery value chain, PowerCo will manage Volkswagen’s global battery business. PowerCo will invest €20 billion in the next eight years to develop the battery business.

PowerCo’s first cell factory in Salzgitter, Germany, will start production in 2025. Volkswagen’s prismatic unified cell will be manufactured here. The plant will reach an annual capacity of 40 GWh – enough for about 500,000 electric vehicles.

The green unified cell will be produced with green electricity. It will have a recycling rate of more than 90% as part of a raw materials cycle.

By 2030, the Volkswagen Group intends to operate six cell factories with a total volume of 240 GWh throughout Europe. The next cell factory will be established in Valencia, Spain. In addition to Europe, PowerCo is also already exploring the possibility of further gigafactories in North America.

PowerCo will be a vertically integrated company. From buying raw materials to cell manufacturing to recycling, everything will be managed by PowerCo itself. Besides cell, the company is also planning to build storage systems for the energy grid in the future.

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).

Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, said: Today is a day to celebrate. At the heart of Europe, we are creating a new future-oriented segment and up to 20,000 future-proof jobs, including 5,000 in Salzgitter alone, at the home of VW. Our heartfelt commitment and responsibility for the transformation of our proud engine plant and the exemplary retention of secure jobs for its employees continue. This principle remains one of our guide rails, just as it has been in the future-oriented area of the battery from a very early stage, is firmly anchored in the Pact for the Future, and has been robustly defended for many years. As a result of these efforts, we now have a showcase for ecological and social transformation.

Also Read: Mahindra EV venture Born Electric to get up to 1980 crore investment from BII.

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Volkswagen PowerCo first cell factory in Salzgitter, Germany.

2 thoughts on “Volkswagen launches a new battery company- PowerCo”

  1. Pingback: BMW Group doubles global EV sales in the first half of 2022 - Electrikez

  2. Pingback: Volkswagen exploring possibilities to set up Li-Ion cell Gigafactory in North America - Electrikez

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