Volkswagen breaks ground on EV battery factory in Germany

WCN Editorial Team 8 Jul 2022 EUROPE BUILDINGS

Automaker Volkswagen broke ground on its first European electric vehicle battery factory at Salzgitter, in Germany's Lower Saxony region.

The SalzGiga facility is expected to become operational in 2025.

Volkswagen also announced creation of a company, PowerCo, which will be led by CEO Frank Blome.

PowerCo along with its partners, plan to invest €20bn by up to 2030 to build electric vehicle batteries, reported DNA.

This plan is expected to create around 20,000 jobs and generate annual sales of more than €20bn.

PowerCo will be responsible for “the establishment of international factory operations, the further development of cell technology, the vertical integration of the value-added chain and the equipment of the factories with machines and systems from Salzgitter”.

More products such as large storage systems for the energy grid are planned by the company in the future.

At the ground-breaking ceremony, German Chancellor Olaf Scholz said: "The future of mobility will once again be made in Salzgitter.”

Scholz further added: "Not so long ago, many Germans thought: we can get batteries from Asia. Today, we know better. The pandemic and Russia's brutal attack on Ukraine makes it clear dependence on global supply chains means a great risk."

Volkswagen’s battery cell project envisages construction of two plants in North America, and six plants in Europe, of which Salzgitter will serve as the "blueprint" for its future standardised production facilities, reported Reuters.

Volkswagen CEO Herbert Diess said: "The battery cell business is one of the cornerstones of our new auto strategy which will make Volkswagen a leading provider of the sustainable, software-driven mobility of tomorrow. Establishing our own cell factory is a megaproject in technical and economic terms."

Image: Volkswagen officials celebrating the construction start of the factory. Credit: Volkswagen AG.

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