The Volkswagen Group has begun development, testing and production of cutting-edge battery cell technology in Salzgitter, Germany, which will generate over 1,000 jobs by 2024.
Courtesy of Volkswagen Group
The battery cells will be developed at Volkswagen’s development centre and pilot line at Salzgitter, Lower Saxony, and also via a new joint venture between the company and Northolt to construct a new battery cell factory. Some 300 experts have been employed at the Salzgitter site, which was opened today, involved in developing, testing and piloting innovative manufacturing technologies for the production of lithium-ion batteries. The group has invested over 100 million euros in Salzgitter and a further 900 million euros in joint battery activities with the Swedish battery producer Northvolt. Construction of the new 16 gigawatt hour battery cell factory, also at Salzgitter, will begin in 2020, aiming to commence production in late 2023/early 2024.
“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” said Dr. Stefan Sommer, Member of the Volkswagen AG Board of Management responsible for Procurement. “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.”
The Group has also established a battery cell business area at Volkswagen Group Components, designed to optimise battery cells for future use in the Group’s electric models in cooperation with suppliers. The aim of the operation ranges from increasing capacity to extend the range and reducing the use of scarce raw materials to optimising sustainable manufacturing processes and recycling battery systems.
Thomas Schmall, Chairman of the Board of Management of Group Components, added that the Group already develop and manufacture power electronics, battery systems, electric motors and charging systems and are building up battery recycling know-how.
A battery recycling pilot line is also under construction in Salzgitter and is expected to begin operating in 2020.