PowerCo SE has officially started production at its Salzgitter gigafactory, manufacturing the first Unified Cells developed and produced entirely in Europe. This marks a significant development for both the Volkswagen Group and the European battery sector, as it is the first time a European carmaker has established its own battery cell development and production within the continent.
The newly produced cells will be supplied to various Volkswagen Group brands for final road testing. They are expected to debut next year in electric vehicles from Volkswagen, ŠKODA, and SEAT/CUPRA.
Oliver Blume, CEO of the Volkswagen Group, stated: "The PowerCo Gigafactory in Salzgitter sends a strong technological signal for Europe and serves as a cornerstone on our path to becoming a global automotive tech leader. We are the first European carmaker to establish our own battery cell development and production. This step strengthens our position and independence in the global competition."
Within the group, PowerCo is projected to supply about half of all Unified Cells needed by Volkswagen brands; external suppliers will provide the remainder. The standardized cell design allows use across different brands and regions, supporting various technologies such as lithium iron phosphate (LFP), nickel-manganese-cobalt (NMC), and solid state.
The initial Unified Cell uses NMC technology and offers approximately 10 percent more energy density than previous models. It integrates with Volkswagen’s new cell-to-pack system, aiming to improve range, efficiency, and performance. Additional variants using LFP technology are planned.
Thomas Schmall, Group Board Member for Technology, commented: "With PowerCo, we are consistently expanding our know-how in battery technology. In combination with the new battery system, the Unified Cell 'made in Salzgitter' brings a real technological leap for our customers. This puts us in the driver’s seat when it comes to a key technology for e-mobility.”
Production capacity at Salzgitter will initially reach up to 20 GWh per year—enough batteries for roughly 250,000 electric vehicles depending on battery size—with plans to expand up to 40 GWh if necessary. The plant will serve as a model for upcoming facilities in Valencia (Spain) and St. Thomas (Canada). Knowledge gained at Salzgitter will be transferred to these locations through personnel exchanges that have already begun.
Salzgitter's Research & Development center continues its expansion since 2022 with additional laboratory and testing facilities underway; another test field is scheduled to open early 2026.
Frank Blome, CEO of PowerCo SE, said: "In just three years, we have built an entirely new company, developed a competitive product, and completed a cell factory along with its upstream supply chain. At the same time, we are already constructing the next cell factories in Spain and Canada. In short: we deliver. This achievement is the result of an outstanding team effort by many colleagues at PowerCo and Volkswagen – and I’m deeply grateful for that."
The Salzgitter facility operates fully on renewable wind and solar energy—including powering clean rooms typically run on fossil fuels—resulting in annual CO₂ emissions up to 115,000 tons lower than conventional plants. Automated processes combined with real-time data analysis support quality control through thousands of monitoring points across machinery and buildings.
Covering an area equivalent to about ten football pitches (69,000 square meters), with dimensions of approximately 600 meters long by 350 meters wide by 30 meters high, Salzgitter stands as both blueprint and lead plant for future gigafactories within PowerCo’s standard concept.