Volkswagen opens a production facility for electric batteries
The Volkswagen Group recently celebrated the new electric battery manufacturing plant in Salzgitter, Germany.
New EV battery company PowerCo has announced the construction of its first EV battery cell factory in Salzgitter. The company plans to invest more than $20 billion in production to become a leading EV battery manufacturer by 2030.
PowerCo will be responsible for business development in Salzgitter and all activities along the entire battery value chain. It will manage the value chain vertical integration, cell technology development, equipment supply to other factories and international factory operations.
Cell production would begin in 2025, creating the model for future factories and expanding production to new plants across North America and Europe. A second plant is expected in Valencia, Spain.
Sustainability and Electric Vehicles
Volkswagen is one of the many vehicle manufacturers trying to explore different models of electric vehicles. It wants to set a standard for innovation and sustainability and close behind Tesla in the production of electric vehicles.
Each factory is operated exclusively with electricity from renewable sources. Renewable storage systems for the energy grid are being planned.
On the subject of sustainability, Federal Chancellor Olaf Scholz said: “Today is a good day for the automotive industry in Germany and Europe. Volkswagen shows what the future of sustainable, climate-friendly mobility could look like. Together we are laying the foundation for shaping this future in Salzgitter.’
The company works with battery cell manufacturers and mining companies to secure material and technological know-how. “We have hired very experienced and seasoned executives from the battery business,‘ said Volkswagen CEO Herbert Diess. ‘We are preparing to become one of the larger battery cell manufacturers.”
Executives who are leaders in the world of electric vehicle battery manufacturing will lead PowerCo, including Frank Blome, head of Volkswagen battery cells and systems, as the unit’s CEO, and former Apple Inc. executive Soonho Ahn as the chief technical officer.
By integrating with batteries, Volkswagen wants to monopolize the industry and rely less on Asian suppliers. The company focuses on long-term relevance and ignores the looming supply chain and uncertainty issues. PowerCo will begin searching for raw materials despite the rising prices faced by electric vehicle manufacturers.
PowerCo would initially source cathode materials from Belgian mining company Umicore SA, battery-grade lithium hydroxide from Vulcan Energy Resources and machinery from Robert Bosch.
Volkswagen also pointed out that PowerCo was formed to facilitate a potential listing for the sale of its shares by 2024.
‘Building your own cell factory is technically and economically a mega project. It shows that we are bringing the cutting-edge technology of the future to Germany. Today we are not only laying a cornerstone, but also marking a strategic milestone. The battery cell business is one of the cornerstones of our NEW AUTO strategy,” said Herbert Diess.
The plant in Salzgitter is to produce 40 gigawatt hours of cells per year and supply up to 500,000 electric vehicles. The six plants together are expected to supply around 3 million electric vehicles for Europe.
Blessing is a great content writer from Texas. She has been writing about energy for over 6 years and shares the passion of our readers. Her stories have been featured in some major news publications and she continues to create awareness and publish content about microgrids, green and clean energy.