Volkswagen Group has connected its first large-scale stationary battery storage facility to the grid at the Salzgitter site, marking its formal entry into the energy storage and trading markets. The 20 megawatt output installation, with a total capacity of 40 megawatt-hours, was deployed by Elli, the Group’s energy subsidiary, after several months of construction. Performance tests for trading on the European power exchange EPEX SPOT are now underway.
The project demonstrates a closed-loop battery ecosystem in Salzgitter, spanning cell production, industrial-scale storage systems and energy market–based optimization. Battery systems for the facility are based on the Unified Cell format developed by PowerCo’s Energy Storage Solutions division. This cell standard is used across Volkswagen Group for electric vehicles and now serves as the platform for stationary storage applications.
“For us, energy storage and energy trading represent a new strategic business area with strong growth potential. As the Volkswagen Group, we are electrifying vehicles while taking a holistic view of the entire system. With PowerCo, we are strengthening our technological sovereignty and with Elli, we manage, store, and trade energy in a market-driven way. This is a key technological building block on our path to becoming a Global Automotive Tech Driver,” says Oliver Blume, CEO of Volkswagen AG.
Thomas Schmall, Member of the Board of Management of Volkswagen AG responsible for Technology, explains: “Electric vehicles and sustainable electricity go hand in hand. The expansion of renewable energies requires powerful options for temporary storage – this is exactly where our PowerCenter comes in. We are making an important contribution to the expansion of renewable energies while leveraging our team’s concentrated battery and energy expertise. With Elli, PowerCo, and Volkswagen Group Components, we are creating a whole new industrial ecosystem. The Unified Cell is the global technology platform for both worlds: mobility and energy.”
Elli’s trading team operates the 13-container system in a virtual power plant under a multi-market approach. Using algorithm-driven strategies and direct market access, the team optimizes asset deployment around the clock, balancing revenue generation with grid-stabilizing ancillary services.
Giovanni Palazzo, CEO of Elli, added, “With the PowerCenter, we are taking on the role of an active storage operator in the European energy market for the first time. This marks the launch of our Managed Battery Network—a platform that intelligently connects large-scale storage systems and, in the future, vehicle batteries and other assets.”
By integrating cell manufacturing, energy storage solutions and digital trading platforms, Volkswagen Group is expanding from automotive manufacturing to become an integrated energy player. Further large-scale storage projects are already in planning to support the stability and flexibility required for widespread electric mobility.
Source: Volkswagen Group
