Volkswagen invests in battery operations at Salzgitter

It has been decided that Volkswagen itself will erect the buildings and infrastructure for the joint venture’s “Northvolt Zwei” factory which will produce lithium-ion battery cells, in order to leverage synergies at the Salzgitter site – based on the existing Center of Excellence for Battery Cells. Some EUR 450 million is to be invested in this project. The joint venture will then rent the factory space. Battery cell production at the plant is scheduled to commence in early 2024 with an initial production capacity of 16 gigawatt hours. “We are optimizing the Volkswagen Group’s strategic position in the key future field of batteries”, says Dr. Stefan Sommer, Volkswagen Group Board Member for Components and Procurement, in a press release. “In addition to a very secure supply base with external producers, we are also systematically building up further capacities.” It was back in September 2019 that Volkswagen and Northvolt established their joint venture with the ultimate goal of large-scale production of lithium-ion batteries in Germany. Volkswagen’s commitment to erect the buildings and infrastructure is the next key strategic decision to make this a reality. Construction work at the site is scheduled to commence before the end of this year. “Battery cell production in Salzgitter is an important step for the transformation to e-mobility”, says Thomas Schmall, CEO of Volkswagen Group Components. “We are pooling expertise at the Salzgitter site with production capabilities and the Center of Excellence for Battery Cells, and are therefore driving battery cell development further forward, developing new standards and transferring them direct to the manufacturing process.” In Europe alone, Volkswagen expects annual demand of over 150 gigawatt hours from 2025, with demand in Asia at a similar level.