Volkswagen is to construct buildings and infrastructure for its joint venture with Northvolt at the Zwei factory to produce lithium-ion battery cells at the Salzgitter site, based on the existing Centre of Excellence for Battery Cells.

Some EUR450m (US$488m) is to be invested in the project, with the joint venture renting the factory space.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Battery cell production at the plant is scheduled to start in early 2024 with an initial production capacity of 16 gigawatt hours.

“We are optimising the Volkswagen Group’s position in the key future field of batteries”, said Volkswagen Group board member for Components and Procurement and member of the Northvolt board, Stefan Sommer.

“In addition to a very secure supply base with external producers, we are also systematically building up further capacities.”

See Also:

In September, 2019, Volkswagen and Northvolt established a joint venture to prepare for the large-scale production of lithium-ion batteries in Germany. Construction work at the site is scheduled to begin before the end of this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Volkswagen Group is amassing technological knowledge in the field of battery cell production as part of its electrification strategy. In addition, the Group maintains relations with several producers to secure its battery supplies in all world regions.

Currently, these suppliers are LG Chem, Samsung and SKI for Europe as well as CATL for China and Europe. In addition, SKI will also supply battery cells for the US market.

In Europe, Volkswagen expects annual demand of more than 150 gigawatt hours from 2025, with demand in Asia at a similar level.