Volkswagen’s PowerCo Begins Construction on Second EV Battery Gigafactory in Spain

Volkswagen’s battery subsidiary, PowerCo, remains on track for series production of its unified cell as it completes the first production block at its Salzgitter factory in Germany. The company is installing production line systems with plans to commence pre-series production this year, preceding full-scale production in 2025.

According to a report by Automobilwoche, Group Chief Technology Officer Thomas Schmall affirmed that the timelines for the Salzgitter facility, as well as upcoming sites in Spain and Canada, are being met. “We remain convinced that our overall battery strategy is the right way forward,” Schmall stated, emphasizing Volkswagen’s dual approach of in-house production alongside purchases from other manufacturers.

Initially planning to produce 80% of its required cells internally, Volkswagen now expects around 50% of battery cells to bear the PowerCo label in the future. This adjustment reflects strategic flexibility amid evolving market conditions.

The unified cell, designed in a prismatic format adaptable to various vehicle types, is expected to debut before 2028, potentially in the ID.2 model. Günther Mendl, head of Volkswagen’s battery centre, hinted at its integration within the MEB and Small BEV Family platforms, emphasizing cost optimization and scalability across vehicle segments.

“The unified cell’s standardized format allows us to streamline platform design and maximize cost efficiencies,” Schmall noted. “Early tests indicate our leadership in range, charging performance, and safety.”