Volkswagen Group’s Board Member Thomas Schmall explained the advantages of PowerCo.
“PowerCo will bundle our global battery activities along the whole value chain. From materials to research and development, in-house production and recycling,” Schmall shared.
“Unified cells and the standard factory will set a new industry standard. This will allow PowerCo to ramp up its business at high speed and best cost. The new company is set to become a top player in cell making. I’m convinced that, in the race to take the lead in e-mobility, PowerCo gives us enormous advantages,” he explained.
Powerco is Volkswagen’s global battery division. Its international factory in Salzgitter will develop cell technology and dive into sourcing raw materials. VW also plans to supply machinery to other factories through PowerCo. The battery division is thinking of developing battery storage units for the grid in the distant future, too.
Volkswagen AG CEO Herbert Diess noted that the battery cell business is the cornerstone of the company’s NEW AUTO strategy, which focuses on four tech platforms. Battery and Charging is one of the tech platforms, while Mechatronics, Software Development, and Mobility Solutions make up the rest.
“Establishing our own cell factory is a megaproject in technical and economic terms. It shows that we are bringing the leading-edge technology of the future to Germany!” said Diess.
The Salzgitter factory is expected to reach 40 GWh of annual battery output, focusing on prismatic unified cell production. At 40GWh, PowerCo’s international factory would produce enough cells for 500,000 vehicles.
With the battery division, VW plans to invest more than $20.3 billion in six European battery gigafactories through 2030. The battery division’s six cell factories are estimated to have a capacity of up to 240GWh annually—enough batteries for 3 million electric vehicles per year. PowerCo is also looking into building battery factories in North America.