PowerCo SE has officially begun production at its Salzgitter gigafactory in Germany, marking the first time the Volkswagen Group has designed, developed and manufactured battery cells entirely in Europe. The initial Unified Cells, based on nickel-manganese-cobalt (NMC) technology, have rolled off the line and are now headed to Volkswagen Group brands for final road tests. These cells are slated to debut next year in the Electric Urban Car Family across Volkswagen, ŠKODA and SEAT/CUPRA.
Volkswagen Group CEO Oliver Blume noted that the Salzgitter facility “sends a strong technological signal for Europe” and represents a cornerstone in the company’s strategy to become a global automotive technology leader. Within the Group, PowerCo is expected to meet roughly half of the demand for Unified Cells, while external suppliers will cover the remainder. The standardized cell architecture is designed for global use across all brands and regions and can accommodate diverse chemistries—from lithium iron phosphate (LFP) to NMC and, in the future, solid-state technologies.
The first-generation Unified Cell offers about 10% higher energy density compared to previous cells and is fully optimized for Volkswagen’s new cell-to-pack battery system, delivering improvements in range, efficiency and performance. Additional variants, including an LFP-based cell, will follow in subsequent production phases.
Annual output at Salzgitter will ramp up to an initial 20 gigawatt-hours (GWh), with the potential to expand to 40 GWh. The facility will also serve as a blueprint for PowerCo’s forthcoming gigafactories in Valencia, Spain, and St. Thomas, Canada. Lessons learned and personnel exchanges are already underway to streamline future expansions.
In parallel, the site’s Research & Development center has expanded its laboratory, testing and development capacities since 2022, with a new test field scheduled to become operational in early 2026. Salzgitter is on track to become Europe’s leading battery hub.
Sustainability and digitalization are core to the gigafactory’s operations: it runs entirely on renewable wind and solar energy, including energy-intensive clean and drying rooms, reducing CO₂ emissions by up to 115,000 tons annually compared to conventional plants. Automated production is supported by real-time data monitoring and AI-driven quality control, ensuring high efficiency and process stability.
Source: Volkswagen Group press release
