PowerCo begins battery cell production at its Salzgitter gigafactory

PowerCo, a subsidiary of the Volkswagen Group, has officially commissioned its battery gigafactory in Salzgitter, Germany, and launched production of its first "made in Europe" Unified Cells. According to the company, this marks the first time Volkswagen has fully designed, developed, and manufactured battery cells in Europe. The cells will be delivered to Volkswagen Group brands for final road testing, with initial applications planned for next year in the Electric Urban Car family, which includes Volkswagen, ŠKODA, and SEAT/CUPRA models. PowerCo is expected to cover about 50% of the Group's demand for Unified Cells, with the rest supplied by external partners. The standardized cell architecture is designed for global use across multiple brands and different battery chemistries, including lithium iron phosphate (LFP), nickel manganese cobalt (NMC), and potentially solid-state batteries. The first Unified Cell produced in Salzgitter uses NMC technology and offers an energy density about 10% higher than previous cells. It is designed for Volkswagen's new cell-to-pack battery system to improve range, efficiency, and performance. Other variants, including LFP-based cells, are planned. Production will ramp up gradually over the coming year. The Salzgitter site has an initial annual capacity of up to 20 gigawatt-hours (GWh), equivalent to about 250,000 electric vehicles, with potential for expansion to 40 GWh. The facility covers 69,000 square meters, roughly the size of ten football fields, and will serve as the blueprint for future PowerCo gigafactories in Valencia, Spain, and St. Thomas, Canada. The Salzgitter site also hosts a growing research and development center, with new testing facilities scheduled to come online in early 2026