Quick Takeaways
- PowerCo has officially started large-scale production of Unified battery cells in Salzgitter, reinforcing Volkswagen Group’s localized EV battery supply strategy.
- The chemistry-agnostic Unified cell design enables cross-brand scalability, higher energy density, and lower-carbon manufacturing across future EV platforms.
On December 17, PowerCo SE officially commenced operations at its Salzgitter gigafactory in Germany, marking the start of large-scale production of PowerCo Unified battery cells manufactured entirely in Europe. This milestone strengthens Volkswagen Group’s strategy to localize battery supply chains while accelerating the rollout of next-generation electric vehicles across multiple brands.
The first batch of PowerCo Unified battery cells will be supplied to Volkswagen Group brands for final road validation. These cells are scheduled to enter series production next year, debuting in electric urban car models from Volkswagen, Škoda, and SEAT/CUPRA. The move signals a critical transition from development to real-world deployment within the Group’s EV portfolio.
PowerCo Unified Battery Cells Enable Cross-Brand Scalability
The Unified battery cell concept is designed as a standardized solution usable across vehicle platforms, brands, and regions. PowerCo plans to supply nearly 50 percent of Volkswagen Group’s total Unified battery cell demand, while the remaining volume will be sourced from external partners. This approach balances internal capacity with supplier flexibility.
A key advantage of the PowerCo Unified battery cells lies in their chemistry-agnostic architecture. The same cell format can accommodate multiple technologies, including:
This flexibility enables faster technology transitions while keeping manufacturing complexity and costs under control.
Higher Energy Density and Cell-to-Pack Integration
The first-generation PowerCo Unified battery cells are based on NMC chemistry and deliver approximately 10 percent higher energy density compared to previous battery generations. These cells are optimized for integration with a new cell-to-pack architecture, eliminating intermediate modules and improving packaging efficiency.
As a result, vehicles equipped with these cells benefit from:
Additional variants, including LFP-based Unified battery cells, are already planned to address cost-sensitive and volume-driven EV segments.
Salzgitter as the Lead Plant for Global Expansion
Battery cell production at Salzgitter will ramp up progressively, with an initial annual capacity of up to 20 GWh. The facility has been designed for future expansion, allowing capacity to scale to 40 GWh per year as demand grows.
Salzgitter will also serve as the lead plant for PowerCo’s upcoming gigafactories in Valencia, Spain, and St. Thomas, Canada. Process expertise, operational data, and skilled personnel are already being shared across sites to ensure consistent quality and accelerated ramp-up timelines globally.
Low-Carbon Manufacturing and Renewable Energy Use
The Salzgitter gigafactory establishes new benchmarks in low-carbon battery manufacturing. The entire facility operates on renewable electricity sourced from wind and solar power. Notably, even the highly energy-intensive clean rooms and drying rooms are powered exclusively by green electricity, a departure from industry norms where fossil fuels are commonly used.
In parallel, PowerCo is expanding its research and development footprint at Salzgitter. A new battery testing and validation facility is under construction and is scheduled to become operational in early 2026, reinforcing the site’s role as a central innovation hub for future battery technologies.
The first batch of PowerCo Unified battery cells will be supplied to Volkswagen Group brands for final road validation. These cells are scheduled to enter series production next year, debuting in electric urban car models from Volkswagen, Škoda, and SEAT/CUPRA. The move signals a critical transition from development to real-world deployment within the Group’s EV portfolio.
PowerCo Unified Battery Cells Enable Cross-Brand Scalability
The Unified battery cell concept is designed as a standardized solution usable across vehicle platforms, brands, and regions. PowerCo plans to supply nearly 50 percent of Volkswagen Group’s total Unified battery cell demand, while the remaining volume will be sourced from external partners. This approach balances internal capacity with supplier flexibility.
A key advantage of the PowerCo Unified battery cells lies in their chemistry-agnostic architecture. The same cell format can accommodate multiple technologies, including:
- Lithium Iron Phosphate (LFP)
- Nickel Manganese Cobalt (NMC)
- Future solid-state battery chemistries
This flexibility enables faster technology transitions while keeping manufacturing complexity and costs under control.
Higher Energy Density and Cell-to-Pack Integration
The first-generation PowerCo Unified battery cells are based on NMC chemistry and deliver approximately 10 percent higher energy density compared to previous battery generations. These cells are optimized for integration with a new cell-to-pack architecture, eliminating intermediate modules and improving packaging efficiency.
As a result, vehicles equipped with these cells benefit from:
- Improved driving range
- Higher overall efficiency
- Enhanced performance consistency
Additional variants, including LFP-based Unified battery cells, are already planned to address cost-sensitive and volume-driven EV segments.
Salzgitter as the Lead Plant for Global Expansion
Battery cell production at Salzgitter will ramp up progressively, with an initial annual capacity of up to 20 GWh. The facility has been designed for future expansion, allowing capacity to scale to 40 GWh per year as demand grows.
Salzgitter will also serve as the lead plant for PowerCo’s upcoming gigafactories in Valencia, Spain, and St. Thomas, Canada. Process expertise, operational data, and skilled personnel are already being shared across sites to ensure consistent quality and accelerated ramp-up timelines globally.
Low-Carbon Manufacturing and Renewable Energy Use
The Salzgitter gigafactory establishes new benchmarks in low-carbon battery manufacturing. The entire facility operates on renewable electricity sourced from wind and solar power. Notably, even the highly energy-intensive clean rooms and drying rooms are powered exclusively by green electricity, a departure from industry norms where fossil fuels are commonly used.
In parallel, PowerCo is expanding its research and development footprint at Salzgitter. A new battery testing and validation facility is under construction and is scheduled to become operational in early 2026, reinforcing the site’s role as a central innovation hub for future battery technologies.
VW Group press release
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