Volkswagen Expands Business Area: Volkswagen Commissions First Large-Scale Battery Storage - Launch of Energy Trading
Salzgitter (Germany) - Volkswagen is expanding its business activities into the field of energy infrastructure: With the new Elli Power Center in Salzgitter, the company has commissioned its first large-scale battery storage system with 20 MW of power and 40 MWh of capacity. This strengthens Volkswagen’s interface between electric mobility, battery technology, and energy trading.
Strategic Battery Ecosystem in Salzgitter
In Salzgitter, Volkswagen subsidiary Elli has successfully connected the Volkswagen Group’s first large-scale battery storage system to the power grid. With 20 MW of power and 40 MWh of capacity, the Power Center is a key component of Volkswagen’s e-mobility strategy. In parallel with the grid connection, performance tests for trading on the European power exchange EPEX are beginning.
“For us, energy storage and energy trading represent a new strategic business area with strong growth potential. As the Volkswagen Group, we are electrifying vehicles while taking a holistic view of the entire system,” said Oliver Blume, CEO of Volkswagen AG.
The Power Center makes it possible to control, store, and trade energy in a market-oriented way - a step toward becoming a “Global Automotive Tech Driver.”
Technologically, the project is based on battery systems from the group’s own company PowerCo. The group-wide standard cell Unified Cell, previously used for electric vehicles, now also serves as a platform for stationary storage solutions.
Thomas Schmall, Member of the Board of Management for Technology, explains: “Electric vehicles and sustainable electricity go hand in hand. The expansion of renewable energies requires powerful options for temporary storage - this is exactly where our Power Center comes in. We are making an important contribution to the expansion of renewable energies while leveraging our team's concentrated battery and energy expertise. The Unified Cell is the global technology platform for both worlds: mobility and energy.“
The Salzgitter site thus forms a closed battery ecosystem: from cell production and industrial large-scale storage manufacturing to market-based commercialization by Elli.
Elli as an Active Energy Trading Player
The Power Center integrates 13 storage containers into a virtual power plant operated under a multi-market approach. Elli’s trading team manages the systems algorithmically around the clock, optimizing both revenues and grid services.
“With the Power Center, we are taking on the role of an active storage operator in the European energy market for the first time. This marks the launch of our Managed Battery Network - a platform that intelligently connects large-scale storage systems, and will include vehicle batteries and other assets in the future”, said Giovanni Palazzo, CEO of Elli. Physical storage capacity becomes digital system intelligence. “We are consistently evolving Elli from a charging provider into an energy company that trades and delivers flexibility on behalf of its customers,” Palazzo added.
The importance of large-scale battery storage for the energy transition is significant: it ensures grid stability, enables temporal flexibility for renewable energy, and supports the expansion of charging infrastructure. As a result, the rise of electric mobility is closely linked with energy expertise - a strategic growth field for Volkswagen.
With the Elli Power Center, Volkswagen demonstrates that it is expanding its role from a traditional automotive manufacturer to an integrated energy player. Cell manufacturing, energy storage solutions, digital trading platforms, and operational market access are combined in Salzgitter in a cross-group project.
This creates a unique industrial ecosystem across the entire energy value chain, marking the transition from electric mobility to comprehensive energy competence.
Source: IWR Online, 12 Mar 2026
