VW starts battery-cell development and production in Germany

VW starts battery-cell development and production in Germany

24 September 2019

The Volkswagen Group (VW) has started small-series, lithium-ion battery-cell production at its Centre of Excellence (CoE) in Salzgitter in the German state of Lower Saxony.

VW will create over 1,000 jobs by 2023/24 for the testing and production of battery cells – 300 at the development centre and on the pilot line and 700 in a joint venture with Swedish battery-cell supplier Northvolt AB to build and operate a 16-gigawatt hour battery-cell factory. A battery recycling pilot line is also under construction in Salzgitter and is slated to begin operating in 2020.

Frank Blome, head of the CoE, commented: ′Today's commissioning of the pilot line is an important step on the road to building a gigafactory at the Salzgitter site. We will further deepen our knowledge of production processes within a short space of time. That is important in order to shape future developments and thus secure performance and costs as well as quality. The experience gained will also contribute to mastering the entire value chain for lithium-ion batteries – from raw materials through production to recycling.'

Investing in the electric offensive

Over €1 billion will be invested in the carmaker's battery-cell activities over the timeframe and, in a first step, VW is investing over €100 million in amassing its own development and production know-how. The group is also investing €900 million in its joint battery activities with Northvolt. In return, VW will acquire about 20% of the shares in Northvolt and will have one seat on the Board of Directors, subject to approval under antitrust legislation.

Dr Stefan Sommer, Member of the Volkswagen AG Board of Management responsible for Procurement, commented: ′Bringing together the development, testing and pilot production of battery cells in Salzgitter marks a further milestone in the Volkswagen Group's comprehensive electric offensive. By pooling know-how at this site, we are making sure we drive forward our own activities to further advance the development of battery cells as a key component in electrification, develop new standards and swiftly transition them to series production.'

Integrated battery-cell business area

VW has established a battery-cell business area at Volkswagen Group Components, which is designed to optimise battery cells for future use in the Group's electric models in cooperation with suppliers. The spectrum ranges from increasing capacity to extending range, reducing the use of scarce raw materials and optimising sustainable manufacturing processes through to recycling battery systems.

Thomas Schmall, Chairman of the Board of Management of Group Components, said: ′We already develop and manufacture power electronics, battery systems, electric motors and charging systems, and are building up battery recycling know-how. With the integration of the battery-cell business area, Volkswagen Group Components is on track to becoming a globally leading producer of e-mobility components.'