SALZGITTER, Germany: Volkswagen Group and the European battery industry has marked a new milestone, with PowerCo SE commissioning the Salzgitter gigafactory as planned and producing the first Unified Cells "made in Europe".
PowerCo is designing, developing and producing battery cells entirely in Europe for the first time.
The cells will now be delivered to the Volkswagen Group brands for final road tests.
Their debut is planned for next year in the electric urban car family of Volkswagen, Skoda and Seat/Cupra.
Volkswagen Group CEO Oliver Blume states, "The PowerCo Gigafactory in Salzgitter sends a strong technological signal for Europe. We are the first European carmaker to establish our own battery cell development and production."
Within the Volkswagen Group, PowerCo is expected to cover around 50 per cent of the demand for Unified Cells, with the other half supplied by external suppliers.
The standardised 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 per cent more energy density.
Furthermore, it is synchronised 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.
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 20GWh will be built up in Salzgitter, which can be expanded to up to 40GWh 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.
At the same time, the research and development centre 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.
PowerCo SE CEO Frank Blome 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."
