Volkswagen launched its own PowerCo "gigafactory" in Germany

Volkswagen's PowerCo company commissioned a "gigafactory" in Salzgitter, Germany, and produced the first unified cells labeled "Made in Europe".

What is known

PowerCo designs, develops, and manufactures battery cells entirely in Europe, thereby strengthening the company's technological sovereignty. The battery cells will be supplied to Volkswagen Group brands for final road testing. Their debut is planned for next year in the Volkswagen, Škoda, and Seat/Cupra electric vehicle families.

PowerCo is expected to cover approximately 50 percent of Volkswagen Group's demand for unified battery cells. The standardized architecture of the battery cells allows them to be used worldwide in all brands and regions, providing economies of scale, cost advantages, and technological flexibility—from lithium-iron-phosphate (LFP) to nickel-manganese-cobalt (NMC) and solid-state battery cells.

The first unified PowerCo cell is based on NMC technology and is one of the most powerful in the mass segment. Compared to previous cells, it provides approximately 10 percent higher energy density. Additionally, it is synchronized with Volkswagen's new "cell-to-pack" battery system, which offers advantages in range, efficiency, and performance. In the future, other variants will also appear, such as the unified PowerCo cell with LFP technology.

PowerCo's unified cell production will gradually ramp up next year. In the first phase, the production capacity of the Salzgitter plant will be up to 20 GWh. This can supply approximately up to 250,000 electric vehicles. In the future, if necessary, the facility can be expanded to 40 GWh. Salzgitter will become the headquarters plant for the next PowerCo "gigafactories" in Valencia, Spain, and St. Thomas, Canada.

Source: Volkswagen Group