On December 2, PowerCo, the battery subsidiary of Volkswagen, announced that its battery plant in Salzgitter, Lower Saxony, is set to commence production within this year.

PowerCo consolidates Volkswagen’s battery operations, covering the entire supply chain from raw materials to finished battery products. The company will supply approximately 50% of the batteries for Volkswagen Group’s models showcased at the 2025 IAA Munich Motor Show, including the ID.Polo, ID.Cross, Cupra Raval, and Škoda Epiq.

However, full-scale mass production at PowerCo’s headquarters plant is expected to begin in 2026, with a daily battery output sufficient to meet the demand for around 500 vehicles.

Currently, PowerCo is repurposing an old factory in Salzgitter into a testing center, which is anticipated to start operations early next year. This initiative will enhance the company’s capabilities in battery research, development, and testing, supporting Volkswagen Group’s electrification strategy.