Volkswagen Group’s PowerCo has commissioned the Salzgitter gigafactory as planned and produced the first Unified Cells “made in Europe”. The commencement of production marks a milestone for the Volkswagen Group and the European battery industry: PowerCo is designing, developing and producing battery cells entirely in Europe for the first time, thus strengthening the company’s technological sovereignty.
The cells will now be delivered to the Volkswagen Group brands for final road tests. Their debut is planned for next year in the Electric Urban Car Family of Volkswagen, ŠKODA and SEAT/CUPRA.
Oliver Blume, CEO of the Volkswagen Group, said: “The PowerCo Gigafactory in Salzgitter sends a strong technological signal for Europe and serves as a cornerstone on our path to becoming a global automotive tech leader. We are the first European carmaker to establish our own battery cell development and production. This step strengthens our position and independence in the global competition.”
Within the Volkswagen Group, PowerCo is expected to cover around 50 per cent of the demand for Unified Cells, with the other half supplied by external suppliers. The standardised cell architecture enables worldwide use across all brands and regions and offers economies of scale, cost advantages and technological flexibility – from lithium iron phosphate (LFP) to nickel-manganese- cobalt (NMC) and solid state, all relevant cell technologies are possible.
The first PowerCo Unified Cell is based on NMC technology and is one of the most powerful battery cells in the volume segment. Compared to previous cells, it delivers around 10 per cent more energy density. Furthermore, it is perfectly synchronised with Volkswagen’s new cell-to-pack battery system and thus offers advantages in range, efficiency and performance. It is produced in Salzgitter. More variants will follow, for example the PowerCo Unified Cell with LFP technology.
Thomas Schmall, Group Board Member for Technology, emphasises: “With PowerCo, we are consistently expanding our know-how in battery technology. In combination with the new battery system, the Unified Cell “made in Salzgitter” brings a real technological leap for our customers.
This puts us in the driver’s seat when it comes to a key technology for e-mobility.”
Production of the PowerCo Unified Cell will be gradually ramped up in the coming year. In the first step, an annual production capacity of up to 20 GWh will be built up in Salzgitter, which can be expanded to up to 40 GWh if required. Salzgitter will serve as the lead plant for the following PowerCo gigafactories in Valencia (Spain) and St. Thomas (Canada), all of which are based on PowerCo’s standard factory concept. The experience gained in Salzgitter will then be transferred to Valencia and St. Thomas. The exchange of know-how and personnel has already begun.
At the same time, the Research & Development centre in Salzgitter continues to grow: Since 2022, the laboratory, testing and development capacities have been strategically expanded. Another test field is currently under construction, which is scheduled to go into operation at the beginning of 2026. As a result, Salzgitter is increasingly developing into the leading battery hub in Europe.
The Gigafactory Salzgitter is also setting new standards for low-CO₂ cell production. Production is running entirely with renewable energy from wind and solar. For the first time, the energy- intensive clean and drying rooms will also be operated with green electricity. In the industry, fossil fuels are typically used for this purpose. In total, the Salzgitter Gigafactory emits up to 115,000 tons less CO₂ annually than comparable, conventional factories.
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