Technology
The “Technology” Board function is divided into four pillars, which are known as tech stacks. These encompass all activities relating to the battery, which are also in the “battery” action area of the Top 10 program, all Group-wide topics relating to charging and energy, the activities of Volkswagen Group Components and the marketing of Volkswagen platforms and components to third parties (Platform Business).
Cross-brand management of all technology activities and the value creation strategy coordinated throughout the Group are designed to improve the Group’s future viability and competitiveness. Synergies are to be leveraged across both traditional technologies and future areas to advance the transition to e-mobility.
Battery
With our battery activities, we aim to substantially reduce the complexity and cost of this key technology so as to make electric vehicles attractive and affordable for as many people as possible. The activities are divided into two areas: the Center of Excellence (CoE) Battery and PowerCo. The CoE is a Group business unit that combines all activities relevant to the battery system, which includes everything from product management, development, quality assurance, and procurement, to end-of-life recycling. The CoE is also responsible for the Group-wide battery portfolio, including the PHEV batteries for the MQB platform and BEV batteries for the MEB platform. The latest generation represents the battery system for plug-in hybrid vehicles that entered series production with the new Tiguan in 2024. More battery systems based on the new unified cell are planned in the next few years in China, Europe, and the USA.
In 2022, Volkswagen founded PowerCo SE, Salzgitter/Germany, its own battery company, which will bundle the Group’s global cell production activities. From the European battery hub in Salzgitter, this company will manage the development of international factory operations, continuous development of cell technology, vertical integration of the value chain and supplies of machinery and equipment to factories. PowerCo’s approach is based on two key concepts with which it aims to set future industry standards: The unified cell enables flexible use of a wide variety of battery chemistries and is intended to be used in up to 80% of all Group models in the future. The second key concept is the standard factory, which aims to enable the rapid rollout of in-house production with standardized buildings, equipment, IT and infrastructure and will thus be quickly and flexibly adaptable to future innovations.
The Group’s first own cell factory based on this model is being built in Salzgitter. Construction of production facilities and machinery continued in 2024 and preparations were made for pre-series production. In addition to Salzgitter, further cell factories are being built in Valencia/Spain and St. Thomas/Canada. The ramp-up of the factories is based on the expected volume of all-electric vehicles from the Volkswagen Group. Each of these factories is to operate on renewable power and be designed for future closed-loop recycling.
Vertical integration of value creation is a major component of the battery strategy. By building up its own cell production, Volkswagen is progressively taking charge of further stages of the value chain so that it can exercise greater influence over the availability, cost and sustainability of key raw and processed materials. The supply of raw materials is safeguarded through long-term supply contracts and investments with partners.
Charging and Energy
Since 2021, the Charging and Energy area has played a key role in the Volkswagen Group’s e-mobility strategy with the aim of becoming a leading provider of a smart charging and energy ecosystem.
The Group’s focus is on two key areas. Firstly, sales of electric vehicles are being underpinned by the development of a global fast-charging infrastructure. In Europe, the Group and its brands are involved in the pan-European joint venture IONITY, the Ewiva joint venture in Italy and other partnerships. By 2025, the number of public fast-charging points in Europe is to increase to 18,000. At the same time, both the North American charging network Electrify America – already one of the largest public charging networks in the USA – is to be expanded to 8,000 fast-charging points and CAMS in China is to be enlarged to 17,000 fast-charging points. Secondly, the Group is exploring new business models involving smart charging and energy solutions. The Group operates as one of the largest vehicle-charging subscription providers in Europe with its charging and energy brand Elli. Its charging network offers access to over 850,000 charging points Europe-wide with approximately 70,000 fast-charging points in 27 countries. Elli expanded its product range in fiscal year 2024 with the release of the Elli Charger 2, providing smart and cost-effective charging to private customers. Elli started electricity trading on the EPEX Spot power exchange in 2023 on its journey to becoming a holistic energy provider. It continued this journey in 2024 with a strategic partnership in photovoltaics with Otovo, Europe’s leading solar energy system platform provider. Elli plans to enter a new business field in the future to develop, build, and operate stationary mass storage systems with partners along the value chain. Elli’s industrial energy storage systems can be used in the future to supply customers and for arbitrage transactions on the energy trading market. The aim is to help to stabilize the power networks and increase their efficiency.
Volkswagen Group Components
The independent corporate entity Volkswagen Group Components, under the umbrella of Volkswagen AG, forms the third pillar of the “Technology” Board function. More than 60,000 staff with expertise in developing and manufacturing vehicle components work worldwide in more than 60 plants at 45 sites.
The product portfolio is focused on technical components such as chassis, axle systems, steering, transmission, electric drivetrains, electric drivetrain thermal management systems and battery systems.
The entry into e-mobility places the focus firmly on optimizing the electrical powertrain for the Group as well as the transformation of plants for internal combustion engine components to plants for e-mobility components.
Platform Business
The fourth pillar of the “Technology” Board function is Platform Business (third-party business), which pools Group-wide responsibility for the external sale of platforms and components. This organizational unit is responsible for the initiation, acquisition (including contract design) and support of customer projects including the related order processing (logistics, billing). In the cooperation project with Ford, the necessary cross-brand structures and processes have been created within the Volkswagen organization so that other external customers can also be efficiently served in the future. The automaker presented the Ford Explorer, the first model based on the MEB, in 2023, and series production commenced in June 2024. The first supply contract for Volkswagen MEB platform components and unified cells was signed with Indian automotive manufacturer Mahindra in early 2024.