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The new Salzgitter battery cell plant is expected to reach an annual capacity of 40 GWh - enough for about 500,000 electric vehicles.

10 Jul 2022 | International News : Germany

Volkswagen has broken ground for the first cell factory in Salzgitter, Germany.

The firm has announced at the event that it is bundling its battery activities with a newly created company, PowerCo. PowerCo will additionally manage international battery cell factory operations and further development of cell technology, while developing vertical integration of the value chain and the supply of machinery and equipment to Volkswagen factories.

The Salzgitter site is said to be a blueprint for future cell factories throughout Europe and will set new standards in terms of sustainability and innovation. This standardisation will not only cover equipment, buildings and infrastructure but also products, processes and IT, allowing Volkswagen to rapidly convert other sites for further product and production innovations. This standardisation will also ensure that each future cell factory, Volkswagen states, can be operated entirely on electricity from regenerative sources and will be designed for future closed-loop recycling.

The Salzgitter plant is said to be manufacturing prismatic unified cell batteries that allows flexible use of a raft of different cell chemistries. This prismatic unified cell battery will be deployed in up to 80% of the Volkswagen Group's vehicles. Production of battery cells for volume segment vehicles is scheduled to begin at the Salzgitter site in 2025, with plant capacity expected to reach an annual capacity of 40GWh - enough for about 500,000 electric vehicles. By 2030, the Volkswagen Group intends to operate six cell factories with a total volume of 240GWh throughout Europe together with its partners.

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