Volkswagen starts construction on the first of six battery plants.

Volkswagen Six Battery Plants – Overview

The official launch of a new battery business that would invest $20 billion through 2030 to become a worldwide EV leader took place on Thursday as the Volkswagen Group broke ground at the first six battery plants it expects to develop in Europe.

Volkswagen‘s new entity, PowerCo, will manage the value chain from raw materials to recycling for the automaker’s global battery business.

With the worldwide market for EVs heating up, the manufacturer anticipates that the factory in Salzgitter, Germany, and the five others slated for Europe will cut its battery costs in half, giving it a significant competitive advantage.

Volkswagen Six Battery Plants
Volkswagen starts construction on the first of six battery plants. 4

The new company and the factories are a part of Volkswagen‘s attempts to increase EV production on a global scale.

Earlier this week, the second-largest automaker in the world revealed ambitions to expand its operations in China with “some big investments” and a hiring drive at CARIAD, Volkswagen’s in-house automotive software division.

According to Volkswagen, the Salzgitter facility will begin producing battery cells in 2025, making it easier to replicate and scale.

It will serve as the standardized model for future sites.

In addition, PowerCo is exploring bringing the product to North America and will situate its second cell factory in Valencia, Spain.

Volkswagen Six Battery Plants
Volkswagen starts construction on the first of six battery plants. 5

The four more European factories’ locations are yet unknown.

Volkswagen Group’s foreign manufacturing operations will be overseen by PowerCo, which will develop cell technology, vertically integrate the value chain, and provide the plants with machinery and equipment.

It is anticipated that the Salzgitter factory will produce 500,000 EVs.

The additional facilities expected for Europe might produce about 3 million EVs.

By 2030, Powerco and partners would invest more than 20 billion EUR ($20.34 billion), according to Volkswagen, and up to 20,000 people might be employed in Europe.

The creation of energy grid storage technologies is one of the additional projects.

Volkswagen Six Battery Plants
Volkswagen starts construction on the first of six battery plants. 6

The business’s founding was a “strategic milestone” by VW CEO Herbert Diess.

In a statement, Diess stated that “establishing our cell plant is a mega-project in technological and financial aspects.”

Furthermore, it demonstrates how we are introducing cutting-edge technology to Germany.

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Volkswagen Six Battery Plants
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