The PowerCo Salzgitter gigafactory is a battery cell plant located in Salzgitter, Germany, that commissioned production on December 17, 2025, turning out its first Unified Cells after the July 2022 groundbreaking. According to Volkswagen Group, the first stage targets 20 GWh a year, roughly 250,000 electric vehicles, with room to expand to 40 GWh.
PowerCo Salzgitter Gigafactory Runs on Renewable Power
Volkswagen says the plant runs entirely on wind and solar power and emits up to 115,000 tonnes less CO2 each year than comparable conventional factories. Lower carbon manufacturing is also central to SHS and its €4.6 billion Power4Steel project in Saarland, where construction has moved above ground.
Project Overview
- Project Name: PowerCo Salzgitter gigafactory
- Location: Salzgitter, Germany
- Owner: PowerCo SE, the battery subsidiary of the Volkswagen Group
- Project Value: Not separately disclosed in the sources reviewed, while Volkswagen cites about €20 billion across its battery business
- Site: 69,000 square meters, about 600 meters long and 350 meters wide
- Capacity: 20 GWh in the first stage, expandable to 40 GWh
- Product: PowerCo Unified Cell in a prismatic format, with the first Salzgitter cells using NMC chemistry and delivering about 10 percent more energy density, according to Volkswagen
- Construction Start: July 2022 groundbreaking
- Production Start: December 17, 2025
- Strategic Impact: PowerCo is expected to cover around 50 percent of Volkswagen Group demand for Unified Cells, with Salzgitter serving as the lead plant for gigafactories in Valencia, Spain and St. Thomas, Canada
Project Team
- Owner and Operator: PowerCo SE (official website not confirmed)
- Parent Company: Volkswagen Group
Reported 13th July 2022: Construction on Volkswagen’s 40GWh battery cell gigafactory in Salzgitter, Germany, has begun. In the future, the company intends to dedicate capacity to grid-scale energy storage. The automative company revealed the commencement at a groundbreaking ceremony held on 7th July 2022. Consequently, the plant, which is scheduled to open in 2025, will produce battery cells for electric vehicles (EVs).
It is a part of the company’s “battery offensive,” which got underway with the establishment of PowerCo, a new subsidiary that will house all of the company’s international battery business. According to Volkswagen, PowerCo intends to produce goods for the grid-scale energy storage market in the future.
The battery industry will receive investments totaling €20 billion (US$20.3 billion). Thus, it will be able to surpass €20 billion in annual sales and employ up to 20,000 people in Europe.
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The Volkswagen’s 40GWh battery cell gigafactory in Salzgitter, Germany
Volkswagen has planned a number of gigafactories, the first of which will be in Salzgitter, where PowerCo will have its headquarters. Moreover, three more gigafactories in Europe are currently being considered. The next one will be built in Valencia. Additionally, PowerCo is investigating the potential for additional gigafactories in North America.
The Volkswagen Group plans to run six cell factories with a combined capacity of 240GWh in Europe by the year 2030. Olaf Scholz, the chancellor of Germany, said of the groundbreaking: “Today is a good day for the automotive industry in Germany and Europe. Volkswagen is presenting a possible future for environmentally friendly, sustainable transportation. Together, we are laying the groundwork for Volkswagen’s 40GWh battery cell gigafactory in Salzgitter to significantly shape this future.
According to the company, each factory PowerCo opens will run entirely on renewable energy sources. Furthermore, it will be built for future closed-loop recycling. It also said that up to 80% of all Volkswagen Group EV models will use its prismatic unified cell, which enables flexible use of various cell chemistries. The cell will lower battery costs by up to 50% and “harness synergy effects.”
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