Chattanooga POWER HAUS

Volkswagen sprints forward in the EV race by integrating battery test, production and EV assembly in the U.S.

Volkswagen is rapidly gaining on General Motors, Ford and Tesla in terms of overall EV development and production assets in North America, according to industry analysts. With the recent launch of its $22 million Battery Engineering Lab (BEL) near Chattanooga, Tennessee, VW becomes the first non-domestic OEM to fully integrate battery test and validation, pack assembly and EV manufacturing in the U.S. The 32,000-sq.ft BEL is adjacent to VW's vehicle and pack assembly complex and includes in-house test capabilities that in some metrics surpass those of the top three domestic EV makers, battery R&D experts indicate to SAE Media.

“We are transforming this region into a powerhouse for EV production, including suppliers,” asserted Johan de Nysschen, Volkswagen Group of America's COO, during a tour of the BEL in June 2022. De Nysschen said VW is moving to full vertical integration of EV batteries in the U.S., including prismatic-cell manufacture and recycling. The plan is being implemented by PowerCo, VW's new wholly owned €20-billion battery organization. A new U.S. cell plant, expected for the Chattanooga area, will be based on a standardized factory design, the first of which is now under construction in Salzgitter, Germany. Salzgitter is designed for 40-GWh annual capacity and will start production in 2025. Six factories built on the Salzgitter “blueprint” currently are in the works for Europe. Each cell plant will be 100% powered by electricity from renewable sources.