PowerCo Commissions Salzgitter Gigafactory, Strengthening Volkswagen’s Battery Technology Strategy

Stacking of battery cells in the Salzgitter Gigafactory

(IN BRIEF) PowerCo SE has launched production at its Salzgitter gigafactory, delivering the first Unified Cells developed and manufactured entirely in Europe. The milestone strengthens Volkswagen Group’s technological sovereignty in battery cell production and supports its strategy to become a global automotive technology leader. The initial NMC-based Unified Cells offer higher energy density and are optimized for Volkswagen’s new battery system, with additional variants planned. Salzgitter will serve as the lead plant for future PowerCo gigafactories in Spain and Canada, while also setting new benchmarks in sustainability and digitalized manufacturing through renewable energy use and AI-supported quality control.

(PRESS RELEASE) WOLFSBURG, 12-Dec-2025 — /EuropaWire/ — PowerCo SE has officially commenced production at its Salzgitter gigafactory, successfully manufacturing the first Unified Cells developed and produced entirely in Europe. The start of operations marks a major milestone for the Volkswagen Group and for Europe’s battery ecosystem, as PowerCo assumes full responsibility for the design, development, and industrial-scale production of battery cells within the region. The initial cells will now be supplied to Volkswagen Group brands for final road testing, ahead of their planned market debut next year in the Electric Urban Car Family from Volkswagen, ŠKODA, and SEAT/CUPRA.

The commissioning of the Salzgitter facility underscores Volkswagen Group’s strategic ambition to strengthen its technological independence and leadership in e-mobility. Volkswagen Group Chief Executive Officer Oliver Blume described PowerCo as a central pillar of the Group’s transformation, emphasizing that in-house battery cell development and production represent a decisive step in securing key future technologies and reinforcing Europe’s position in the global automotive technology landscape.

Copyright: Volkswagen AG

Within the Group’s battery strategy, PowerCo is expected to supply around half of the demand for Unified Cells, with the remaining volume sourced from external partners. The Unified Cell concept is based on a standardized architecture that can be deployed globally across brands and markets. This approach enables significant economies of scale, cost efficiencies, and high technological flexibility, supporting a broad range of cell chemistries including lithium iron phosphate, nickel-manganese-cobalt, and future solid-state solutions.

The first Unified Cell produced in Salzgitter is based on NMC technology and ranks among the most powerful battery cells in the high-volume segment. Compared with previous generations, it delivers approximately 10 percent higher energy density and is fully optimized for Volkswagen’s new cell-to-pack battery system, delivering gains in range, efficiency, and overall vehicle performance. Additional variants, including LFP-based Unified Cells, are scheduled to follow.

According to Thomas Schmall, Volkswagen Group Board Member for Technology, the successful launch of Unified Cell production represents a significant technological advance. Combined with the Group’s new battery system, the Salzgitter-produced cell positions Volkswagen firmly in control of one of the most critical technologies shaping the future of electric mobility.

Production at the Salzgitter gigafactory will ramp up gradually over the coming year. Initial capacity is planned at up to 20 GWh annually, with the option to expand to as much as 40 GWh. The site will act as the lead plant for PowerCo’s subsequent gigafactories in Valencia, Spain, and St. Thomas, Canada, all built on a standardized factory concept. Knowledge transfer between locations is already underway, supported by exchanges of expertise and personnel.

Copyright: Volkswagen AG

In parallel, PowerCo continues to expand its research and development capabilities in Salzgitter. Laboratory, testing, and development infrastructure has been significantly strengthened since 2022, with an additional test field scheduled to become operational in early 2026. These investments are positioning Salzgitter as a central hub for battery innovation in Europe.

Sustainability and digitalization are core features of the Salzgitter gigafactory. Battery cell production is powered entirely by renewable electricity from wind and solar sources, including energy-intensive clean and drying room operations, which traditionally rely on fossil fuels. As a result, the facility is expected to emit up to 115,000 tonnes less CO₂ per year than comparable conventional plants. Highly automated manufacturing processes, supported by real-time data analysis and AI-driven quality control, enable continuous improvements in efficiency, traceability, and product quality.

Frank Blome, Chief Executive Officer of PowerCo SE, highlighted the pace of progress achieved since the company’s founding, noting that within three years PowerCo has built a new organization, developed a competitive battery product, and brought a full-scale cell factory and supply chain into operation, while simultaneously advancing new gigafactory projects in Spain and Canada.

Facts & Figures on Salzgitter Gigafactory

Media Contacts:

Andreas Groß
Head of Communications | PowerCo SE
+49 (0) 152 2912 2413 andreas.gross@powerco.de

SOURCE: Volkswagen AG