German automaker Volkswagen AG is expanding beyond electric vehicles and entering the energy storage and trading market, as global demand for EVs grows more slowly than previously expected, according to Bloomberg and Agerpres.
The company has started operations at its first large-scale energy storage facility located in Salzgitter, Germany. The installation can supply electricity to around 20,000 households for about two hours.
Connected to the energy trading market
The system is connected to the grid and will also be used to trade electricity on the European power exchange EPEX SPOT.
The facility uses battery cells produced by PowerCo, the company’s internal battery unit.
Volkswagen previously planned to build up to seven battery plants, but the company has revised its ambitions as EV demand slowed.
Battery technology as a new revenue source
The automaker is now exploring additional revenue streams from battery technology, as Chinese suppliers cut prices and EV sales growth weakens.
Earlier plans aimed to build enough battery capacity to power around three million electric vehicles annually by 2030.
Rising demand for energy storage
Demand for energy storage solutions is increasing due to the expansion of data centers and the growing share of renewable energy in electricity grids.
“Energy storage and energy trading represent a new strategic business area with strong growth potential,” said Oliver Blume.
Since launching PowerCo in 2022, Volkswagen has reduced the planned capacity of the Salzgitter battery plant to 20 GWh per year, while maintaining long-term plans for up to 200 GWh across factories in Germany, Spain and Canada.
Photo: DW
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