Volkswagen’s energy subsidiary Elli has connected its first large-scale battery energy storage system (BESS) to the power grid in Salzgitter, Germany, marking the group’s entry into the energy storage and electricity trading markets.
The installation has an output of about 20 megawatts and a storage capacity of 40 megawatt-hours. The system consists of 13 container units and will trade stored electricity on the European Power Exchange (EPEX).
Volkswagen said the project forms part of a broader strategy to expand beyond vehicle manufacturing and develop an integrated role in the energy ecosystem.
The storage facility, called a PowerCentre, is designed to absorb electricity when supply in the grid exceeds demand and feed it back into the system when consumption rises. Such systems are increasingly viewed as important tools for stabilizing power grids and supporting the integration of renewable energy.
“For us, energy storage and energy trading represent a new strategic business area with strong growth potential,” Volkswagen CEO Oliver Blume said.
“As the Volkswagen Group, we are electrifying vehicles while taking a holistic view of the entire system. With PowerCo, we are strengthening our technological sovereignty and with Elli, we manage, store, and trade energy in a market-driven way. This is a key technological building block on our path to becoming a Global Automotive Tech Driver,” Blume added.
Volkswagen said the Salzgitter facility was built using its own battery technology. The storage system uses the group’s unified battery cells produced by its battery subsidiary PowerCo, which began manufacturing the cells in Salzgitter in December.
These cells are integrated into battery systems developed by PowerCo specifically for stationary energy storage applications.
Thomas Schmall, Volkswagen AG board member responsible for technology, said the project highlights the growing connection between electric vehicles and renewable energy systems.
“Electric vehicles and sustainable electricity go hand in hand. The expansion of renewable energies requires powerful options for temporary storage – this is exactly where our PowerCenter comes in,” Schmall said.
He added that Volkswagen’s collaboration across its divisions is intended to create a broader industrial ecosystem.
“With Elli, PowerCo, and Volkswagen Group Components, we are creating a whole new industrial ecosystem. The Unified Cell is the global technology platform for both worlds: mobility and energy,” Schmall said.
The project is expected to serve as the first step toward Elli’s planned “Managed Battery Network,” a platform designed to connect stationary storage systems, electric vehicle batteries and other energy assets.
Volkswagen said such systems could eventually support bidirectional charging, allowing electric vehicle batteries to supply electricity back to the grid when needed.