Oliver Blume, CEO of the Volkswagen Group, states: "The PowerCo Gigafactory in Salzgitter sends a strong technological signal for Europe and serves as a cornerstone on our path to becoming a global automotive tech leader. We are the first European carmaker to establish our own battery cell development and production. This step strengthens our position and independence in the global competition."
Technological leap in battery technology
Within the Volkswagen Group, PowerCo is expected to cover around 50 percent of the demand for Unified Cells, with the other half supplied by external suppliers. The standardized cell architecture enables worldwide use across all brands and regions and offers economies of scale, cost advantages and technological flexibility – from lithium iron phosphate (LFP) to nickel-manganese-cobalt (NMC) and solid state, all relevant cell technologies are possible.
The first PowerCo Unified Cell is based on NMC technology and is one of the most powerful battery cells in the volume segment. Compared to previous cells, it delivers around 10 percent more energy density. Furthermore, it is perfectly synchronized with Volkswagen’s new cell-to-pack battery system and thus offers advantages in range, efficiency and performance. It is produced in Salzgitter. More variants will follow, for example the PowerCo Unified Cell with LFP technology.
Thomas Schmall, Group Board Member for Technology, emphasizes: "With PowerCo, we are consistently expanding our know-how in battery technology. In combination with the new battery system, the Unified Cell "made in Salzgitter" brings a real technological leap for our customers. This puts us in the driver’s seat when it comes to a key technology for e-mobility.”
Salzgitter becomes Europe's leading battery center
Production of the PowerCo Unified Cell will be gradually ramped up in the coming year. In the first step, an annual production capacity of up to 20 GWh will be built up in Salzgitter, which can be expanded to up to 40 GWh if required. Salzgitter will serve as the lead plant for the following PowerCo gigafactories in Valencia (Spain) and St. Thomas (Canada), all of which are based on PowerCo's standard factory concept. The experience gained in Salzgitter will then be transferred to Valencia and St. Thomas. The exchange of know-how and personnel has already begun.
At the same time, the Research & Development center in Salzgitter continues to grow: Since 2022, the laboratory, testing and development capacities have been strategically expanded. Another test field is currently under construction, which is scheduled to go into operation at the beginning of 2026. As a result, Salzgitter is increasingly developing into the leading battery hub in Europe.
Frank Blome, CEO PowerCo SE, says: "In just three years, we have built an entirely new company, developed a competitive product, and completed a cell factory along with its upstream supply chain. At the same time, we are already constructing the next cell factories in Spain and Canada. In short: we deliver. This achievement is the result of an outstanding team effort by many colleagues at PowerCo and Volkswagen – and I’m deeply grateful for that."
New standards in sustainability and digitalization
The Gigafactory Salzgitter is also setting new standards for low-CO₂ cell production. Production is running entirely with renewable energy from wind and solar. For the first time, the energy-intensive clean and drying rooms will also be operated with green electricity. In the industry, fossil fuels are typically used for this purpose. In total, the Salzgitter Gigafactory emits up to 115,000 tons less CO₂ annually than comparable, conventional factories.
Highly automated production combined with comprehensive real-time data analysis is the key to continuously improving process stability, efficiency and quality. Thousands of data points from machine and building monitoring enable seamless traceability and form the basis for AI-supported quality control.
Facts & Figures on Salzgitter Gigafactory
| Groundbreaking: | July 2022 |
| Area: | 69,000 square metres – equivalent to approx. 10 football pitches |
| Dimensions: | approx. 600 m length, 350 m width, 30 m height |
| Concept: | Standard factory, blueprint for further cell factories (Valencia, St. Thomas) |
| Max. Capacity: | 40 GWh, first expansion stage with 20 GWh 20 GWh = approx. 250,000 electric vehicles (depending on battery size) |
| Energy: | Renewable energy from wind and solar power |
| Product: | PowerCo Unified Cell, prismatic cell format, can accommodate different cell chemistries (Salzgitter: NMC) |
