Volkswagen Group creates European company for its battery business

Volkswagen to make Salzgitter into its European battery hub

Volkswagen stablished a European company to consolidate its battery activities from processing raw materials to developing a unified Volkswagen battery to managing the European gigafactories.

The company’s scope will include new business models based around reusing discarded car batteries and recycling the valuable raw materials they contain.

As part of its NEW AUTO strategy, the Volkswagen Group is aiming to become a leading manufacturer of electric vehicles.

Thomas Schmall, member of the Board of Management for technology at Volkswagen AG and CEO of Volkswagen Group Components, and thus responsible for batteries, charging and energy as well as for the in-house production of components, said: “We want to offer our customers powerful, inexpensive and sustainable vehicle batteries, which means we need to be active at all stages of the battery value chain that are critical for success.

“We are now bundling our power in Salzgitter, with the aim of encouraging innovation and securing the support of the best partners for our new company going forward.

“We already have a strong battery team in Salzgitter made up of 500 employees from 24 countries – and we are continuing to strengthen this team at leadership level.”

Volkswagen is planning to establish six gigafactories in Europe to cover the growing demand for battery cells within the Group. Battery cell production in Salzgitter is set to start in 2025.

Over the next five years, the Group will be investing around €52 billion in the development and production of new electric vehicles.

The NEW AUTO strategy also covers the development of the new business fields batteries, charging and energy.

In addition, the Group is creating dedicated technology platforms that enable cross-brand synergies, including the modular electric drive matrix MEB and an SSP platform, due to launch in 2026.

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