VW Begins Pilot Production of Battery Cells

Volkswagen AG has begun small-scale production of lithium-ion battery cells on a pilot line at the company’s new Center of Excellence in Salzgitter, Germany.

VW says it is investing more than €100 million ($109 million) in the first phase of the program. This will include developing and testing advanced manufacturing processes for electric vehicle batteries.

The Salzgitter battery center employs 300 people. In addition to the pilot production line, engineers there are working on next-generation designs and new chemistries to optimize performance and reduce costs. A recycling pilot program will be launched in 2020.

In June, VW announced a €900 million ($985 million) investment in Northvolt AB, a Stockholm-based startup that specializes in EV batteries. As part of the deal, the companies created a joint venture. The partners plan to begin constructing a 16-GWh factory in Germany by early 2024.

VW Group plans to introduce 70 plug-in hybrid and pure EVs across its brands by 2028 with cumulative sales of 22 million units by that time. The carmaker says it must source batteries from multiple suppliers and produce them in house to satisfy demand.