Volkswagen Group has marked a major milestone in Europe’s electric mobility journey with the commissioning of PowerCo SE’s Salzgitter gigafactory, officially starting large-scale battery cell production in Europe. The facility has successfully produced its first Unified Cells “made in Europe”, reinforcing Volkswagen’s strategy to secure key future technologies in-house.
The start of production positions PowerCo as a central pillar in Volkswagen Group’s battery strategy, making it the first European carmaker to develop and manufacture its own battery cells at scale. The newly produced cells will now be delivered to Volkswagen Group brands for final road testing, with their market debut planned next year in the Electric Urban Car Family of Volkswagen, ŠKODA and SEAT/CUPRA.
Volkswagen Group CEO Oliver Blume described the development as a defining step for the company and the region. “We are taking the key future technologies into our own hands. 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,” he said.
Technological Leap with Unified Cell Architecture
At the heart of the Salzgitter facility is PowerCo’s Unified Cell concept, a standardized battery architecture designed for global deployment across brands and regions. PowerCo is expected to meet around 50% of Volkswagen Group’s Unified Cell demand, with the remainder sourced from external partners.
The first cell produced in Salzgitter is based on nickel-manganese-cobalt (NMC) technology and delivers around 10% higher energy density compared to previous-generation cells in the volume segment. Fully compatible with Volkswagen’s cell-to-pack battery system, the new cells promise improvements in range, efficiency and overall performance. Future variants, including LFP-based Unified Cells, are also planned.
Thomas Schmall, Volkswagen Group Board Member for Technology, said the new battery system represents a clear advantage for customers. “The Unified Cell ‘made in Salzgitter’ puts us in the driver’s seat for one of the most critical technologies in e-mobility,” he noted.
Salzgitter Emerges as Europe’s Battery Hub
Production at Salzgitter will be ramped up gradually, with an initial annual capacity of 20 GWh, expandable to 40 GWh—enough to power up to 250,000 electric vehicles per year, depending on battery size. The site will serve as the lead plant for upcoming PowerCo gigafactories in Valencia, Spain, and St. Thomas, Canada, with know-how transfer and personnel exchanges already underway.
Alongside manufacturing, Volkswagen continues to expand battery research and development in Salzgitter. Since 2022, laboratory and testing capabilities have been significantly scaled up, with a new test field scheduled to become operational in early 2026, further strengthening the site’s role as Europe’s leading battery innovation center.
Setting New Benchmarks in Sustainability and Digitalisation
The Salzgitter gigafactory has been designed to set new standards in low-CO₂ battery production. Operations run entirely on renewable energy from wind and solar, including energy-intensive clean and drying rooms—an industry first. As a result, the plant is expected to emit up to 115,000 tonnes less CO₂ annually compared with conventional battery factories.
Highly automated production lines, supported by real-time data analytics and AI-based quality control, enable seamless traceability and continuous improvements in efficiency, stability and product quality.
PowerCo CEO Frank Blome highlighted the speed and scale of execution behind the project. “In just three years, we have built a new company, developed a competitive battery product, and completed a cell factory with its supply chain—while already constructing the next plants in Spain and Canada,” he said.
With the commissioning of the Salzgitter gigafactory, Volkswagen Group has taken a decisive step toward battery independence, scalable EV production, and technological leadership, strengthening Europe’s position in the global electric vehicle ecosystem.
