Volkswagen began construction of its first EV battery cell factory in Salzgitter, Germany, which aims to become a blueprint for all future cell factories throughout Europe.
Production at the new facility is scheduled to start in 2025, with a planned capacity of 40GWh per year. With immediate effect, responsibility for global battery business is to be held by the newly created company PowerCo. In addition to cell production, the new company will be responsible for activities along the entire battery value chain.
Up until 2030, PowerCo is to invest more than €20 billion (US$20.3bn) together with partners in the development of the business area, to generate annual sales in excess of €20 billion and to employ up to 20,000 people in Europe alone.