Battery production with Gotion High-Tech at Salzgitter

According to its press release, Volkswagen Group and Gotion High-Tech Co., Ltd. deepen their partnership.

Based on a shareholding agreement in May 2020, Volkswagen entered a strategic cooperation framework with the major Chinese battery producer. One goal of both partners is to industrialize the planned battery cell production at the Salzgitter site of Volkswagen Group. Another is to develop first use cases of the Volkswagen unified cell concept for the volume segment.

Both projects are part of the overarching plan of Volkswagen Group, which are outlined at the Power Day in March. As a result, Volkswagen aims to significantly reduce battery complexity and costs while boosting range and charging performance. Thus, the company believes that the electric car will be more attractive and affordable.

Gotion High-Tech will be in charge of the cell factory layout, machinery, and production processes. In addition, Gotion High-Tech will develop the first generation of unified cells for the volume segment. Furthermore, the new activities will not affect ongoing contracts with other battery suppliers.

One of Six gigafactories

The agreement means that the Salzgitter traditional engine plant is consequently transforming. At the same time, a new battery production cell hub will be built up in partnership with Gotion High-Tech. At the site, there are a Group-wide Center of Excellence Battery Cell with extensive cell laboratories, a pilot line for cell production, and a pilot plant for battery recycling. Also, construction will start immediately to produce batteries in 2025.

Volkswagen Group will establish six gigafactories with a total production capacity of 240 GWh in Europe alone. This bold decision aims to secure battery cell supply and achieve large economies of scale while implementing production innovations.

Who is Volkswagen?

According to its official page, the Volkswagen brand is one of the world’s largest and most important car manufacturers. In fact, the company has realized innovative technologies, top quality and attractive design for more than 70 years. For example, there are several bestsellers including the Beetle or the Golf.

However, the company wants to proactively shape the ongoing transformation of the automotive industry. As a result, their growing I.D. family represents a new generation of fully-connected electric cars.

The Volkswagen has achieved some incredible numbers. For instance, annual deliveries to customers are more than the 6 million. Thus, the Volkswagen brand is a key pillar in the success of the Volkswagen Group. What’s more, Wolfsburg is the brand’s nerve center. It is not only home to brand headquarters and the development center, but also where the main plant is located.

Volkswagen operates over 50 production locations on all five continents and employs more than 200,000 people. With some 70 different models, it has a presence in all major market segments and almost every country around the world. Furthermore, vehicle deliveries are highest in China and Europe.

“ACCELERATE” strategy

In 2016, Volkswagen launched the transformation of the Volkswagen brand: With the TRANSFORM 2025+ strategy, the company has completely realigned itself.

They have renewed their model range from the ground up. To be specific, Volkswagen has made a clear commitment to e-drive vehicles. With “ACCELERATE” strategy, they are initiating the next phase of this transformation.

As a result, the brand will stand for climate-friendly e-mobility like no other, for fascinating digital customer experiences, for new business models and for autonomous driving across the board. With “ACCELERATE”, they are now giving the digitalization of the brand a further boost.