“For us, energy storage and energy trading represent a new strategic business area with strong growth potential. As the Volkswagen Group, we are electrifying vehicles while taking a holistic view of the entire system. With PowerCo, we are strengthening our technological sovereignty and with Elli, we manage, store, and trade energy in a market-driven way. This is a key technological building block on our path to becoming a Global Automotive Tech Driver,” says Oliver Blume, CEO of Volkswagen AG.
Strategic milestone for a new business segment
The technological foundation of the project is provided by battery systems developed by the Group’s battery subsidiary PowerCo. Through its Energy Storage Solutions (ESS) division, PowerCo develops and manufactures industrial-scale storage systems based on the established Unified Cell format.
The Unified Cell serves as the Group-wide standard cell for electric mobility and simultaneously provides the platform for stationary storage applications. For the first time, PowerCo is thus supplying energy storage solutions for industrial use. At the Salzgitter site, this creates a closed-loop battery ecosystem – spanning cell manufacturing, stationary storage systems and energy market-based optimisation by Elli.
Thomas Schmall, Member of the Board of Management of Volkswagen AG responsible for Technology, explains: “Electric vehicles and sustainable electricity go hand in hand. The expansion of renewable energies requires powerful options for temporary storage – this is exactly where our PowerCenter comes in. We are making an important contribution to the expansion of renewable energies while leveraging our team's concentrated battery and energy expertise. With Elli, PowerCo, and Volkswagen Group Components, we are creating a whole new industrial ecosystem. The Unified Cell is the global technology platform for both worlds: mobility and energy."
Energy trading: Elli as an active market participant
The system, comprising of 13 storage containers and integrated into a virtual power plant, operates under a multi-market approach. Elli’s trading team manages and optimises the assets around the clock using algorithm-based strategies and direct market access, maximising revenues while simultaneously providing ancillary services to the grid.
“With the PowerCenter, we are taking on the role of an active storage operator in the European energy market for the first time. This marks the launch of our Managed Battery Network – a platform that intelligently connects large-scale storage systems, and will include vehicle batteries and other assets in the future. Physical storage capacity becomes digital system intelligence. We are consistently evolving Elli from a charging provider into an energy company that trades and delivers flexibility on behalf of its customers,” says Giovanni Palazzo, CEO of Elli (Volkswagen Group Charging GmbH).
Electric mobility requires energy expertise
As transport becomes increasingly electrified, demands on grid stability and flexibility rise significantly. The success of the energy transition depends on the availability of reliable capacity: renewable electricity must be accessible precisely when industry, SMEs, and consumers need it.
Large-scale battery storage plays a crucial role by providing flexibility. It absorbs excess electricity during periods of oversupply and makes it available during low-generation phases. In doing so, it stabilizes grids, supports the integration of renewable energy and underpins the expansion of charging infrastructure. Electric mobility and energy infrastructure are therefore strategically interlinked.
Energy as a new growth field
With the operational launch of the PowerCenter, the Volkswagen Group is expanding its role from automotive manufacturer to integrated energy player. The convergence of the mobility and energy transitions is a central strategic element of the Group’s transformation.
The Salzgitter production site exemplifies this integrated approach. Here, cell manufacturing, battery system expertise, stationary large-scale storage and digital energy platforms converge in a cross-divisional joint project involving Elli, Volkswagen AG, PowerCo and other Group entities.
Through the coordinated interplay of cell production, energy storage solutions, digital trading platforms and operational market access, synergies are created along the entire energy value chain – at a level of vertical integration that, in this form, only the Volkswagen Group can deliver.
The Elli PowerCenter therefore marks a tangible step in the evolution from charging provider to integrated mobility and energy technology company.
