Volkswagen starts producing its own battery cells

Yesterday, Volkswagen opened a pilot production line for lithium-ion battery cells in Salzgitter, near Wolfsburg. It’s the first step towards building a gigafactory in the same town, for which the car company partners with Northvolt from Sweden. Construction of the 16 gigawatt-hour plant, a 50/50 joint venture, is scheduled to start next year and will take approximately four years.

Along with the pilot line, Volkswagen formed a dedicated battery cell business area as a part of its Components division. “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,” said Thomas Schmall, chairman of the Components’ group board of management.

Volkswagen currently sources its automotive batteries from Asian suppliers.