VW Group starts battery cell development and production in Salzgitter

VW Group starts battery cell development and production in Salzgitter

VW Group starts battery cell development and production in Salzgitter 150 150 Energy Storage Journal

October 3, 2019: A pilot line for small-series battery cell production was opened with fanfares at Volkswagen’s Center of Excellence at Salzgitter, Germany at the end of September. This will be followed by construction of a 16GWh battery cell factory to start in 2020. Production should start by early 2024. 

The move is part of a huge investment Volkswagen Group is making in building up battery cell development and production know-how in Germany.

Over €1 billion ($1.1 billion) is to be invested in the Volkswagen Group’s battery cell activities over the same period.

In a first step, Volkswagen is investing more than €100 million in amassing its own development and production know-how. Volkswagen is also investing around €900 million in joint battery activities with the Swedish battery producer Northvolt.

In Salzgitter (Lower Saxony), more than 1,000 jobs are to be created by 2023/24 for testing and producing battery cells — 300 jobs at Volkswagen’s development centre and pilot line, 700 in a joint venture between Northvolt and Volkswagen, to build and operate a battery cell factory.

Stefan Sommer, a VW board member, said: “Bringing together the development, testing and pilot production of battery cells in Salzgitter marks a further milestone in the Volkswagen Group’s comprehensive electric offensive. 

“By pooling know-how at this site, we are making sure we drive forward our own activities to advance the development of battery cells as a key component in electrification, develop new standards and swiftly transition them to series production.” 

A battery recycling pilot line is also under construction in Salzgitter and should begin operating in 2020.