Volkswagen builds its first battery cell factory in Germany

The company claims it wants to become a leader in electric car manufacturing and the act is a move in that direction

On Monday, Volkswagen laid the foundations of their new battery production facility in Salzgitter, Germany. This represents a shift in orientation as the German car giant had previously been reluctant to expand into the electric vehicle battery market.

However, according to a press release from last December, Volkswagen Group wants to become a leader in the field and securing their own battery production is a key step in that direction. This is why they have announced an additional five factories that will be established in Europe until the end of the decade - in Spain and in Eastern Europe.

Salzgitter – small town, big ambitions

The new production facility in Salzgitter will be finalised in 2025 and according to a statement by the company, it should be able to manufacture 20-gigawatt hours’ worth of batteries, which should then double at a later stage.

The site has been used as a pilot test facility since 2019 and currently has 500 employees, however, that number is set to grow to about 2,500, all in the small town. Furthermore, the site is set to become the main hub for research and development of new battery innovations for the company.

Additionally, the plant will also be capable of recycling raw materials from used car batteries, which will help Volkswagen strengthen its independence further. This is an important factor, due to the fact that, after the facility is complete, the company will still rely on global supply chains for raw materials in battery manufacturing.

Volkswagen’s factory in Salzgitter was built in the 1970s and became the main engine plant for the company. It is also home to Volkswagen’s internal combustion engine research centre. This move, however, signals that even car companies are beginning to embrace electric and sustainable transportation as the way to go.