Volkswagen Group initiates battery cell development and production

The Volkswagen Group has started its development, testing and production of battery cell technology in Germany.

Testing will ensure over 1,000 jobs are to be created by 2023/24.

Over one billion Euros will be invested in the developmental stages in the next five years.

Dr. Stefan Sommer, member of the Volkswagen Board of Management responsible for procurement, said: “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.

“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.”

Roughly 300 experts are taking part in the developing, testing and piloting for the production of lithium-ion batteries.

In addition, Volkswagen is investing a further 900 million Euros in joint battery operations with Swedish battery producer Northvolt.

The 50/50 joint venture will create 700 jobs in the medium-term, with the start of battery production beginning in 2023/2024.

The conclusion of the deal came in June, and in return, Volkswagen has received about 20 percent of the shares in the Swedish battery manufacturer and a seat on the Supervisory Board.

Thomas Schmall, chairman of the board of management of group components, said: “We already develop and manufacture power electronics, battery systems, electric motors and charging systems, and are building up battery recycling know-how.

“With the integration of the battery cell business area, Volkswagen Group Components is on track to becoming a globally leading producer of e-mobility components.”

Battery production is expected to increase the demand for electric vehicles (EVs).