Volkswagen Group is going in big on EVs with their recent 20 billion Euros investment into Mission SalzGiga; the new company is slated to solve Volkswagen's demand for batteries for their electric vehicles.
The new company, which is called PowerCo, is set to tackle the global supply-chain shortage. Precious metals like cobalt, lithium, and nickel mainly go into the making of EV batteries, and the new company will focus on further sustainable battery development and maybe move on from the dependency on these metals.
VW’s Salzgitter plant in Valencia, Spain will be ground-zero for the group’s global battery activities, from producing their own batteries and conducting R&D on new technologies that may even extend out of the automotive realm. German Chancellor Olaf Scholz has commended the initiative of the VW group citing the importance of a sustainable future and climate-compatible mobility.
Once Salzgitter is online, PowerCo will begin working on a second factory in the same area. They are also eyeing other factories in the EU and potentially Northern America. Their aim is to operate using 100% renewable energy and produce a total of 240 GWh capacity every year. That’s around 6 million electric vehicles worth of charge and will help them achieve their 2030 / 2040 mandate of going fully electric with their vehicle lineup.
The plant is expected to create 5,000 new jobs once its doors open in 2025. They are also targeting an annual capacity of 40GWh which is around 500,000 EVs worth. Additional 20,000 job openings will be offered soon as the other EU factories will open.
With this, VW hopes to raise the standards of their batteries for their EVs. With the recent unveiling of several EVs in their lineup, the car German group wants a firmer grip on their future batteries and powertrains so when it comes to sustainable technologies. This will be beneficial for potential future customers and the environment.