In order to strengthen its own electric vehicle development layout and also to respond to the current factors such as the epidemic and the war between Ukraine and Russia, which have greatly affected the supply of key parts, Volkswagen AG announced the establishment ofA company called PowerCo, will invest in the battery market development. In addition to producing automotive battery products, it also plans to expand into battery design for power storage systems.
PowerCo chose Salzgitter, near Hanover, in northern Germany, to build its first battery factory. It plans to build a second factory in Valencia, Spain's third-largest city and Europe's "Sunshine City." It also plans to build a third factory in Europe and more in North America. It also emphasizes that all battery factories in Europe will operate on 100% renewable energy.
The first battery factory in Salzgitter is scheduled to begin production in 2025, with an annual battery production capacity of 40 GWh, enough for approximately 50 electric vehicles. If all six planned battery factories are operational by 2030, annual battery production capacity is expected to reach 240 GWh, enough to power 600 million electric vehicles.
In addition, Volkswagen Group expects that PowerCo's first battery factory will create approximately 5000 new jobs, and further expects that the subsequent establishment of more battery factories will add approximately 2 jobs in Europe.
As for PowerCo, Frank Blome, formerly responsible for battery cell and system-related businesses at Volkswagen Group, will serve as CEO, and Sebastian Wolf, formerly Chief Operating Officer of Volkswagen Group's battery cell production business, will join the management team.
