Volkswagen Group on Thursday announced the establishment of the new company PowerCo which will be responsible for the automaker's global battery activities going forward.
The announcement was marked with the start of construction of VW Group's first plant for battery cell production, located in Salzgitter, Germany. Salzgitter is where VW Group in 2019 opened a“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,” Herbert Diess, VW Group's CEO, said in a statement.
The Salzgitter plant is scheduled to open in 2025. It will have an annual capacity of 40 gigawatt-hours, or enough for about about 500,000 electric vehicles. Via PowerCo, VW Group plans five more battery cell plants in Europe and potentially some in North America, in some cases with partners such asThe next location has been confirmed as Valencia, Spain, close to where VW Group plans production of
. The six European plants are expected to supply annually 240 gwh, and these cells will not only be for vehicle batteries but also energy storage systems, including for the energy grid.that will be used in roughly 80% of the automaker's lineup. The automaker expects the common cell design to reduce battery costs by as much as 50%. Production of the common cells will begin in 2025.
There will still be unique cell designs for some applications, like high-performance vehicles, which VW Group will
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