PowerCo SE has officially launched its Salzgitter gigafactory, producing the first Unified Cells developed and manufactured entirely in Europe. This event marks a significant development for both the Volkswagen Group and the European battery sector, as PowerCo now handles the full process of designing, developing, and producing battery cells within Europe. The new cells will be supplied to Volkswagen Group brands for final road testing, with plans to introduce them next year in electric vehicles from Volkswagen, ŠKODA, and SEAT/CUPRA.
Oliver Blume, CEO of the Volkswagen Group, commented: “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. We are the first European carmaker to establish our own battery cell development and production. This step strengthens our position and independence in the global competition.”
Within Volkswagen Group operations, PowerCo is expected to supply about half of the required Unified Cells while external suppliers provide the rest. The company’s standardized cell architecture allows these batteries to be used across different brands and regions worldwide. This approach brings cost savings and flexibility in technology choices—including lithium iron phosphate (LFP), nickel-manganese-cobalt (NMC), and solid-state options.
The initial Unified Cell produced at Salzgitter uses NMC technology. It offers roughly 10 percent more energy density than previous models. The cell is designed to work with Volkswagen’s new cell-to-pack system, which is intended to improve range, efficiency, and performance. Additional variants using LFP technology are planned for future production.
Thomas Schmall, Group Board Member for Technology at Volkswagen AG stated: “With PowerCo, we are consistently expanding our know-how in battery technology. In combination with the new battery system, the Unified Cell ‘made in Salzgitter’ brings a real technological leap for our customers. This puts us in the driver’s seat when it comes to a key technology for e-mobility.”
Production capacity at Salzgitter will start at up to 20 GWh per year with potential expansion up to 40 GWh depending on demand—enough batteries annually for approximately 250,000 electric vehicles depending on battery size. The facility also acts as a lead plant for upcoming gigafactories in Valencia (Spain) and St. Thomas (Canada). Knowledge gained at Salzgitter will be shared with these sites through ongoing personnel exchanges.
Research & Development activities continue to expand at Salzgitter since 2022 with additional laboratory space under construction; another test field is scheduled to begin operation by early 2026.
Frank Blome, CEO of PowerCo SE said: “In just three years, we have built an entirely new company, developed a competitive product, and completed a cell factory along with its upstream supply chain. At the same time, we are already constructing the next cell factories in Spain and Canada. In short: we deliver. This achievement is the result of an outstanding team effort by many colleagues at PowerCo and Volkswagen – and I’m deeply grateful for that.”
The factory aims to set benchmarks for sustainability by running entirely on renewable wind and solar energy—even powering traditionally fossil-fuel-dependent clean rooms with green electricity—which could reduce CO₂ emissions by up to 115,000 tons each year compared with conventional facilities.
Automation plays a central role; thousands of data points from equipment monitoring enable comprehensive real-time analysis that supports process stability improvements as well as AI-driven quality control systems.
Salzgitter’s gigafactory covers an area of 69,000 square meters—about ten football pitches—with dimensions approximately 600 meters long by 350 meters wide by 30 meters high.
