Volkswagen Group subsidiary PowerCo SE has commissioned the Salzgitter gigafactory as planned and produced the first ‘unified cells’ that are made in Europe.
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PowerCo is also designing, developing and producing battery cells entirely in Europe for the first time. The unified cell is a newly developed prismatic battery cell format that relies on cell-to-pack technology, eliminating the need for costly battery modules.
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, ŠKODA and SEAT/CUPRA.
Oliver Blume, CEO of the Volkswagen Group, said: “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.”
Within the Volkswagen Group, PowerCo is expected to cover around 50% of the demand for Unified Cells, with the other half supplied by external suppliers. It says 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 VW claims it is one of the most powerful battery cells in the volume segment. Compared to previous cells, it delivers around 10% more energy density, the company claims. 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 such as the PowerCo Unified Cell with LFP technology.
Thomas Schmall, Group Board Member for Technology, said: “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.”
Volume ramp-up planned
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 PowerCo gigafactories in Valencia (Spain) and St. Thomas (Canada), 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, VW says.
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.”
