The Volkswagen Group starts its own battery production. Production has officially started at the battery subsidiary Powerco’s first plant in Salzgitter, as the company announced – just in time for the then announced start of production by the end of 2025. The cell factory on the site of the previous VW engine plant had been under construction since July 2022. More than a billion euros have been invested so far. Further plants are being built according to the same pattern in Valencia in Spain and in St. Thomas in Canada, which are scheduled to start in 2026 and 2027. CEO Oliver Blume described the new building as a “strong, technological signal for Europe” and an important component of his group strategy. “We are the first European automobile manufacturer to have established our own development and production of battery cells. This strengthens our position and independence in global competition.”Up to 700,000 cells per dayThe number of units is still modest: initially only a few hundred battery cells leave the factory per day. But the number is expected to grow quickly: in the end there will be 600,000 to 700,000 cells per day, which Salzgitter alone will supply. Targeted annual capacity: 20 gigawatt hours, enough for around 250,000 electric cars. The cells from Salzgitter will be used for the first time in the new small electric cars VW ID.Polo and Cupra Raval, which are scheduled to launch in Spain in 2026. The first cells are now being delivered there. “There they go into the vehicles for final tests,” says Chief Technology Officer Thomas Schmall in an interview with the German Press Agency. “The actual ramp-up of production in Salzgitter will take place next year, parallel to the ramp-up of vehicles in Spain.” China has dominated the battery market so far. “The battery is the key technology in e-mobility. Whoever controls the battery controls the car,” emphasized Schmall. According to VW, the battery accounts for 30 to 40 percent of the total cost of an electric vehicle. The standard cell for up to 80 percent of all of the group’s e-cars is intended to help reduce costs. So far, manufacturers from Asia have dominated here, especially from China, which has a big lead. The insolvency of the Swedish manufacturer Northvolt in particular had recently slowed Europe’s battery hopes. “We believe in electromobility.” “If overall demand grows more slowly than originally planned, then Powerco will also grow more slowly,” says Schmall. “We are dependent on the ramp-up of e-mobility.” And there is no longer any mention of the six battery factories that former CEO Herbert Diess once wanted to build. “We are very well positioned with the locations in Salzgitter, Valencia and St. Thomas,” said Schmall. “No further locations are currently being planned.”More on the subjectPowerco boss Frank Blome does not want to raise doubts about the electric course. “We believe in electromobility,” he says. The discussion about an end to the combustion engine in the EU does not change this.
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