Volkswagen begins production of electric vehicles with German battery cells

Volkswagen is beginning the production and sale of electric vehicles, such as the ID Polo, utilizing domestically produced battery cells from its Salzgitter plant. This move aims to reduce dependence on Asian manufacturers like CATL and BYD by utilizing the company's battery subsidiary, PowerCo, and focusing on a scalable ‘unified cell’ design.

To achieve entry-level pricing below 25,000 euros, Volkswagen is increasingly adopting Lithium Iron Phosphate (LFP) technology. While LFP cells are significantly cheaper to produce than Nickel Manganese Cobalt (NMC) variants—costing approximately 81 dollars per kWh compared to 128 dollars—they face performance challenges in cold climates.

Reports indicate that LFP batteries can lose up to 40 percent of their capacity at temperatures of -20 degrees Celsius. For a vehicle like the ID Polo with a 37 kWh LFP battery, this could result in a range reduction of up to 200 kilometers in extreme winter conditions, compared to the more reliable but more expensive NMC alternatives.