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 Group 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 battery business field is divided into two units: the Center of Excellence Battery and PowerCo. The Center of Excellence Battery is the Group business field responsible for all activities relevant to battery systems and battery cells. This includes everything from product management, development, quality assurance and procurement to end-of-life recycling. The unit is also responsible for the Group-wide battery portfolio, including the PHEV batteries for the Modular Transverse Toolkit (MQB) and BEV batteries for the MEB platform. Following the successful production startup of the new all-electric MEB+ platform in early 2026 for the Core brand group’s electric urban car family, the focus is now on an update to the previous MEB product portfolio (ID.3, ID.4, Škoda Enyaq, Cupra Born, Audi Q4 e-tron, etc.). The plan is to transition the current MEB platform with batteries based on the present module-to-pack design to cell-to-pack battery systems featuring the unified cell in the coming years. This will involve battery systems based on both LFP (lithium iron phosphate) and NMC (nickel manganese cobalt) cell chemistries. More battery systems based on the cell-to-pack design featuring the unified cell as the Volkswagen Group’s new global technology platform are to follow in the next few years in China, Europe and the USA.
We will be bundling worldwide cell production activities within the Group with our own company, PowerCo SE, Salzgitter/Germany. 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 cell chemistries and is intended to be used in up to 80% of all of the Group’s all-electric 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 in Salzgitter came on stream in 2025 and delivered the first cells for further validation within the Group. Series production is slated to commence in 2026. 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 another component of the battery strategy. The supply of raw materials is to be safeguarded both through long-term supply contracts and through investments with partners. In 2025, Volkswagen took a 9.9% stake in Canadian lithium company Patriot Battery Metals, which is currently developing the largest lithium resources in North America.
Charging and Energy
The ramping up of e-mobility affords the Charging and Energy area 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 is focusing on two main areas. Firstly, sales of electric vehicles are being promoted with the expansion of a global fast-charging infrastructure. Secondly, the charging ecosystem for customers is to be made simpler and more cost-effective, while at the same time the battery is to be made usable as a flexible storage medium for the transition of energy. The Group operates as one of the largest charging ecosystem providers in Europe with its Elli brand, offering access to over one million charging points with approximately 88,000 fast-charging points in 28 countries. At the same time, the North American charging network Electrify America is expanding to over 5,000 fast-charging points and joint venture CAMS in China is continuing to expand its network, which boasts over 11,700 charging points at present. As part of the Volkswagen Group, Elli provides a seamless ecosystem for sustainable mobility and energy. 2025 was a decisive year for the Group subsidiary on its journey from a charging infrastructure provider to a holistic energy company. With the launch of a pilot project for bidirectional charging, Elli presented a charging solution at IAA Mobility 2025 for the first time that connects a home’s solar power system and the electric vehicle via a modular software platform developed by Elli. In parallel, Elli expanded its portfolio to include energy trading as a service product for external customers, offering companies a reliable partner for structured and sustainable energy procurement. The Elli PowerCenter developed for this purpose serves as a platform for energy trading and grid-supportive services. These developments also form the basis for the Managed Battery Network – a virtual power plant in which stationary storage systems and vehicle batteries are interconnected in order to efficiently integrate renewable energy sources, smooth out peak loads and make surplus energy tradable. With these steps, the Volkswagen Group and Elli are unequivocally positioning themselves at the touchpoint between the automotive industry and the energy sector.
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. 58,000 staff with expertise in developing and manufacturing vehicle components work worldwide in more than 60 plants at 35 sites. This makes Volkswagen Group Components one of the largest automotive suppliers worldwide. Historically, Volkswagen Group Components has had a strong presence in the components segment for vehicles with conventional drive systems but is systematically moving forward with the transformation of its product portfolio, focusing on strategic core modules for e-mobility. The transformation to a system supplier is being effected gradually: in 2025, 7.7 million internal combustion engines and 6 million transmissions were manufactured worldwide, but 1.2 million electric drives and 1.2 million battery systems were produced at the same time. This change is also reflected in the skill profiles of employees. Core competencies with a focus on future technologies are being developed and expanded, and employees are being specifically trained to meet the requirements of e-mobility. By the end of 2024, around 25% of employees were already working in these strategic cutting-edge fields. This proportion rose to over 30% by the end of 2025, and is expected to continue to grow in the coming years.
The product portfolio comprises technical components such as chassis, axle systems, steering, transmission, electric drivetrains, including the related power electronics, thermal management systems and battery systems.
The entry into e-mobility places the focus on systematically optimizing the electrical powertrain for the Group as well as the transformation of plants for components from internal combustion engine to e-mobility components. The product portfolio has accordingly been strategically defined and focused. A good example is the APP550 electric performance drive, the most powerful and efficient electric drive system from Volkswagen Group Components to date.
In line with the transformation and based on its existing technological expertise, the division has also opened up to cooperation with external partners in order to leverage potential synergies and economies of scale, thereby accelerating the transformation to electric mobility and contributing to the establishment of Volkswagen technologies as the industry standard.
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). The tech stack platform business builds on decades-long experience in the Group’s internal platform sharing. Ford was the first-ever external partner to use the Volkswagen Group’s MEB platform. In this cooperation project, the required cross-brand structures and processes have been established within the Volkswagen organization so that collaborations with other external partners can also be set up in the future. For instance, the Indian automotive manufacturer Mahindra has been supplied with MEB components for vehicles based on the INGLO platform since June 2024; the PowerCo unified cell is also planned to be delivered to the automotive manufacturer going forward.