Volkswagen has commenced battery production at its new factory in Salzgitter through its subsidiary PowerCo. The plant, located on the former VW engine factory site, has been under construction since July 2022 with over one billion euros invested so far. Similar facilities are currently being developed in Spain and Canada.

VW Group CEO Blume described the Salzgitter plant as a strong technological statement for Europe. The move aims to strengthen Volkswagen’s position and independence in the global competition, where battery cell production is currently dominated by Asian manufacturers, particularly from China.