Volkswagen Breaks Ground On German Battery Manufacturing Plant

On July 7, a new battery manufacturing plant by Volkswagen took its first steps to become operational.

In Salzgitter, Germany, Volkswagen broke ground on its new battery manufacturing plant. This plant, coyly nicknamed “Salzgiga”, referencing Tesla’s Berlin-based Gigafactory is the first of six plants, part of a $20 billion investment into battery manufacturing technology. This factory is part of a spin-off tech company called PowerCo, which VW says will generate more than $20 billion of economic activity, and will employ more than 20,000 people.

The plant’s batteries will be used in future EV Volkswagen group products, like the ID series and Audi E-tron series of vehicles that use the MEB and other future electrified platforms. Volkswagen and PowerCo expect the platform will reach up to 40GWh “in the near future”, providing battery packs for more than 500,000 cars.

German Chancellor Olaf Scholz insists that plants like the SalzGiga factory are crucial for a more energy-independent Germany. Reuters reported the chancellor insisting that relying on batteries from Asia was a “mistake,” and how the conflict with Russia, and the COVID 19 pandemic exposed the precariousness of global supply chains.

Also during the ceremony, Volkswagen unveiled a standardized battery cell that will comprise all future produced packs made by PowerCo. This new unified battery cell design will be used in 80% of all VW electrified products. Volkswagen says the cell design will make EV battery packs up to 50% cheaper, and allow for dynamic scaling among all battery designs.

Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.