- PowerCo will invest over €20 billion by 2030.
- Production at the Salzgitter cell factory starts in 2025.
- The Salzgitter plant will have a capacity of 40 GWh.
- Volkswagen plans six cell factories in Europe by 2030.
Investment and Production Timeline
Volkswagen's new company, PowerCo, will oversee global battery production, with an investment of over €20 billion by 2030. The first cell factory in Salzgitter, Germany, broke ground in the presence of German Chancellor Olaf Scholz, and production is set to begin in 2025.
Scope and Expansion
PowerCo will manage activities along the entire battery value chain, including cell production, technology development, and supply chain management. The company plans to establish additional cell factories in Valencia and three other European locations, with potential expansion into North America.
Leadership and Management
PowerCo will be led by CEO Frank Blome, with a board comprising Sebastian Wolf (COO), Kai Alexander Müller (CFO), Soonho Ahn (CTO), Jörg Teichmann (CPO), and Sebastian Krapoth (CHRO). Thomas Schmall, a member of Volkswagen's Board of Management, emphasized the strategic importance of vertical integration from raw materials to recycling.
Standardization and Sustainability
The Salzgitter factory will serve as a blueprint for future cell factories, focusing on standardization of equipment, buildings, and processes. Each factory will operate on 100% renewable electricity and be designed for closed-loop recycling. The unified cell format will allow for flexible use of different cell chemistries, aiming to reduce battery costs by up to 50%.
Future Plans
By 2030, Volkswagen aims to operate six cell factories in Europe with a total capacity of 240 GWh. The Salzgitter plant alone will produce 40 GWh annually, enough for approximately 500,000 electric vehicles. The unified cell prototypes have shown promising performance in range, charging times, and safety.
