Volkswagen Group’s battery unit PowerCo SE has commissioned its gigafactory in Salzgitter and produced its first Unified battery cells made entirely in Europe, marking a milestone for the automaker and the region’s battery industry.
The start of production makes Volkswagen the first European carmaker to establish in-house battery cell development and manufacturing at scale on the continent. The initial cells will now be delivered to Volkswagen Group brands for final road testing, with series deployment planned from next year in the Electric Urban Car Family across Volkswagen, Škoda and SEAT/CUPRA.
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“The PowerCo Gigafactory in Salzgitter sends a strong technological signal for Europe,” Volkswagen Group Chief Executive Oliver Blume said, calling the project a cornerstone in the company’s ambition to become a global automotive technology leader.
PowerCo is expected to supply around half of Volkswagen Group’s future demand for Unified Cells, with the remainder sourced from external suppliers. The standardized cell architecture is designed for global use across brands and regions and supports multiple chemistries, including lithium iron phosphate (LFP), nickel-manganese-cobalt (NMC) and, in the future, solid-state batteries.
The first Unified Cell produced in Salzgitter is based on NMC technology and delivers about 10% higher energy density than previous-generation cells, according to the company. It is designed to work with Volkswagen’s new cell-to-pack battery system, targeting gains in range, efficiency and performance. Additional variants, including LFP-based cells, are planned.
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“With PowerCo, we are consistently expanding our know-how in battery technology,” said Thomas Schmall, Volkswagen Group board member for technology, adding that the Salzgitter-built Unified Cell represents “a real technological leap” for customers.
Production capacity at Salzgitter will be ramped up gradually, starting with up to 20 gigawatt-hours (GWh) annually and expandable to 40 GWh. The site will act as the lead plant for PowerCo’s future gigafactories in Valencia, Spain, and St. Thomas, Canada, with experience and personnel already being shared across locations.
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PowerCo said the Salzgitter plant is also designed to set new standards for sustainability and digitalisation. The factory operates entirely on renewable energy and uses real-time data and automation to support quality control, while aiming to cut annual carbon emissions by up to 115,000 tonnes compared with conventional battery plants.
“In just three years, we have built an entirely new company, developed a competitive product, and completed a cell factory along with its upstream supply chain,” PowerCo Chief Executive Frank Blome said.
