In recent years many carmakers have signalled an intent to manufacture more electric vehicles (EVs), with some already earmarking 2030 as the year that fleets go fully electric. For Volkswagen, on top of electrifying the majority of its commercial vehicles, it is now spinning up a new division called PowerCo.
Under this banner, the German carmaker aims to manufacture and sell the batteries that will power not only its own EVs, but those from other companies too.
To that end, VW broke ground on its first cell factory in Salzgitter, Germany, with production of batteries expected to begin in earnest in 2025.
“Today we are not only laying a foundation stone but also marking a strategic milestone. 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. Establishing our own cell factory is a megaproject in technical and economic terms. It shows that we are bringing the leading-edge technology of the future to Germany,” enthused Herbert Diess, CEO of Volkswagen AG, at the ground breaking.
“The Volkswagen Group is bundling its global battery activities in the European company (SE) PowerCo. From Salzgitter, the company will, with immediate effect, manage international factory operations, the further development of cell technology, the vertical integration of the value chain and the supply of machinery and equipment to the factories,” adds a press statement about the new division.
Following its first Salzgitter facility, PowerCo aims to begin work on a second factory in Valencia, Spain. This will be followed by three further cell factories in Europe, although no countries are named yet, along with potentially spinning up a factory in North America too.
Volkswagen says each of the European factories will operate using 100 percent renewable energy, with the six PowerCo facilities in Europe producing an estimated total of 240 GWh capacity every year, which could potentially power up to 6 million EVs.
There is no word on whether South Africa, or indeed anywhere in the MEA region, factors into PowerCo’s plans for now, but seeing as how selected models of VW are manufactured here, hopefully SA will be a part of the conversation.
