Volkswagen begins the development and production of battery cells in Salzgitter, Germany

Volkswagen has launched the pilot line of its new state-of-the-art battery cell production facility in Salzgitter, Germany. The initial phase involves some 300 experts in the development and manufacturing of lithium-ion battery cells. Construction of a joint manufacturing facility with a capacity of 16 GWh together with the Swedish battery producer Northvolt is scheduled to begin in 2020 on the same site, with production starting at the end of 2023 or the beginning of 2024.

By 2024, more than 1,000 jobs will be created to test and produce battery cells: 300 at the development centre and pilot line of Volkswagen and 700 at the Volkswagen–Northvolt joint venture.

“By bundling technical expertise at this site, we are ensuring that we drive our own activities forward to further advance the development of battery cells as a key component in electrification, develop new standards and rapidly transfer them to series production,” said Dr. Stefan Sommer, member of the Board of Management of Volkswagen AG.

The new battery cell business of the Volkswagen Group will be used to supply its upcoming electric vehicles in cooperation with the company’s suppliers. The development centre will focus on a wide range of activities, including increasing capacity to expand the field of practice, reducing the use of scarce raw materials, optimising manufacturing processes and recycling battery systems.

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Battery cell production, the new objective of the Volkswagen Group

“We already develop and manufacture power electronics, battery systems, electric motors and charging systems, and we are building up knowledge in battery recycling,” said Thomas Schmall, Chairman of the Board of Management of Volkswagen Group Components. “With the integration of the battery cell business area, Volkswagen Group Components is on its way to becoming a leading global producer of electric mobility components.”

The carmaker has set up a pilot line for the small-series production of battery cells at the Centre of Excellence (CoE) in Salzgitter. Some 300 experts are involved in the development, testing and experimentation of innovative manufacturing technologies for lithium-ion battery production. As a first step, Volkswagen is investing more than €100 million in building up its own development and production expertise.

Frank Blome, head of the Centre of Excellence for Battery Cells in Salzgitter, commented that “starting up the pilot line is an important step on the path towards building a gigafactory at the Salzgitter site. We will further deepen our knowledge of production processes in a short space of time. That is important for shaping future developments and thus ensuring performance and costs, as well as quality. The experience gained will also help to master the entire value chain of lithium-ion batteries, from raw materials to production and recycling.”

The Volkswagen Group has therefore established “a battery cell business area within Volkswagen Group Components. This business area 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 extend range, reducing the use of scarce raw materials and optimising sustainable manufacturing processes, through to recycling battery systems.”