A significant milestone has been reached for the Salzgitter Gigafactory as Prime Minister Stephan Weil of Lower Saxony unveils the first industrial machine for the cell factory. The machine, which measures around 10 x 3 meters, marks the beginning of a new construction phase. The ramp-up of the machine and equipment park will now commence, with over 2,500 standard containers needed solely for equipment delivery. The Volkswagen Group’s battery company, PowerCo, is on schedule for its first mega project, and battery cell production at the Salzgitter site will commence in 2025.
Prime Minister Weil visited Salzgitter as part of his two-day summer tour focused on energy in Lower Saxony. The Gigafactory is regarded as an industrial symbol in Germany and a showcase for Lower Saxony as a location. Additionally, the Gigafactory leads the way in sustainability by relying on renewable energy and implementing innovative production processes like dry coating, which can reduce energy usage by up to 30 percent in the future.
Weil explained, “Volkswagen’s decision to construct the first gigafactory for battery cell production in Lower Saxony was courageous and wise. The pandemic has shown us the importance of being self-reliant in crucial areas of production, particularly regarding the battery, which is an essential component of electric vehicles. We must ensure that Germany remains a hub for battery cell production in the face of high energy costs.”
Thomas Schmall, Volkswagen Group Board Member Group Technology, stated, “A year ago, this area was just an open field, but now we are already setting up the first high-tech machines. This demonstrates the speed at which we are executing our plans. PowerCo is well on its way to becoming a global player in the battery industry, potentially serving as a new, future-proof powerhouse for Lower Saxony and Germany.”
The Gigafactory Salzgitter covers an area of approximately 2 million square meters, equivalent to around 280 football fields, making it one of the largest construction projects in Lower Saxony. In total, three PowerCo sites are under construction, including Salzgitter, Valencia, and St. Thomas, Canada. These factories combined will have a total capacity of up to 200 gigawatt hours per year, enough to power over 2 million electric cars.
PowerCo: Attracting Battery Experts
PowerCo is becoming a draw for battery experts. By July 1, 2023, the battery company is expected to employ its one-thousandth employee. By the end of the year, the workforce is projected to grow to up to 1,500. The average age of employees is currently 38, and more than a quarter come from international backgrounds. PowerCo also boasts a higher-than-average female representation of over 30 percent compared to the rest of the industry.
PowerCo CEO Frank Blome stated, “We are building an exceptional team. One year after its establishment, PowerCo has become an attractive destination for experienced battery specialists, who are highly sought-after worldwide. Simultaneously, we are actively training and qualifying our Group employees. In times of skilled labor shortages, this gives us a clear competitive advantage.”