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Volkswagen's PowerCo Open to External Investors for Battery Subsidiary Growth

Strategic Insights

— 1 min read

Volkswagen AG's battery subsidiary PowerCo is receptive to partnering with outside investors to achieve its growth goals beyond 2030, according to Thomas Schmall, the group's technology chief. This decision is informed by the company's ambitions to expand its battery cell production capacity, reduce its reliance on suppliers, and master the underlying technology required for electric vehicle production. PowerCo is currently constructing battery cell factories in Salzgitter, Germany, Valencia, Spain, and St Thomas, Canada, with series-ready cells expected to roll off the production line in Salzgitter this year.

Key Takeaways:

  • PowerCo, Volkswagen's battery subsidiary, is open to outside investors to support its growth beyond 2030, as stated by Thomas Schmall, the group's technology chief.
  • The company is building battery cell factories in Salzgitter, Germany, Valencia, Spain, and St Thomas, Canada, with series-ready cells set to roll off the production line in Salzgitter this year.
  • VW aims to manufacture a large share of the cells needed for its electric vehicles in-house to reduce reliance on suppliers.
  • PowerCo plans to employ different cell chemistries over time to reduce dependence on individual raw materials.
  • Thomas Schmall emphasized the importance of mastering the underlying technology for cell performance, which is crucial for range, charging speed, and overall output.
  • The new model from SEAT's Cupra subsidiary, set to begin production in 2026, will utilize the battery cells produced in Salzgitter.
  • Volkswagen shares closed up 2.6% at EUR104.00 in Frankfurt on Monday.

Statistics:

  • 2030: The year by which PowerCo aims to achieve growth through external capital.
  • 2026: The year in which series-ready battery cells will be used in a new SEAT Cupra model.
  • 2.6%: The amount by which Volkswagen shares closed up in Frankfurt on Monday.
  • EUR104.00: The closing price of Volkswagen shares in Frankfurt on Monday.
  • Salzgitter, Germany: One of the locations where PowerCo is constructing a battery cell factory.

Sources:

  • dpa: "Volkswagen AG battery subsidiary PowerCo open to outside investors" (Copyright 2025 Alliance News Ltd. All Rights Reserved.)

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