Volkswagen makes initial investment of €450m to erect buildings and infrastructure for a joint battery cell factory in Salzgitter

VW Saltzgitter

Construction work at Salzgitter is scheduled to commence before the end of this year with the start of battery cell production at the plant planned to commence in early 2024

Volkswagen will erect the buildings and infrastructure for the joint venture’s “Northvolt Zwei” factory to produce lithium-ion battery cells, this will leverage synergies at the Salzgitter site – based on the existing Centre of Excellence for Battery Cells. The joint venture will then rent the factory space. Construction work at the site is scheduled to commence before the end of this year with the start of battery cell production at the plant planned to commence in early 2024, with an initial production capacity of 16 gigawatt hours.

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“Battery cell production in Salzgitter is an important step for the transformation to e-mobility”, said Thomas Schmall, CEO of Volkswagen Group Components.

“We are pooling expertise at the Salzgitter site with production capabilities and the Centre of Excellence for Battery Cells, and are therefore driving battery cell development further forward, developing new standards and transferring them direct to the manufacturing process.”

salzgitter vw battery development

VW is pooling expertise at Salzgitter with production capabilities and the Centre of Excellence for Battery Cells

Currently, these suppliers are LG Chem, Samsung and SKI for Europe as well as CATL for China and Europe. In addition, SKI will also supply battery cells for the US market.

As part of its electrification strategy VW has been developing its technological expertise in battery cell production. In addition, the Group maintains strategic relations with several producers to secure its battery supplies globally.

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