Following several months of construction, the Volkswagen Group is expanding into stationary energy infrastructure. In Salzgitter, the Group’s energy subsidiary Elli has connected its first large-scale battery storage system to the grid. The facility has an output of approximately 20 megawatts (MW) and a storage capacity of 40 megawatt-hours (MWh). With this project, Elli is formally entering the energy storage and energy trading markets. Performance tests for trading on the European power exchange EPEX SPOT are currently underway.
The project forms a key pillar of Volkswagen’s e-mobility strategy. Large-scale battery storage systems “absorb surplus power during periods of high renewable generation and feed it back into the grid during periods with limited wind and solar output.”
“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. With PowerCo, we are strengthening our technological sovereignty and with Elli, we manage, store, and trade energy in a market-driven way. This is a key technological building block on our path to becoming a Global Automotive Tech Driver,” said Oliver Blume, CEO of Volkswagen AG.
Technological Foundation and Unified Cell
The battery systems were developed by the Group’s subsidiary PowerCo. Through its Energy Storage Solutions (ESS) division, PowerCo manufactures industrial-scale storage systems using the Unified Cell format, the Group-wide standard for electric mobility and stationary storage.
Thomas Schmall, Member of the Board of Management responsible for Technology, said: “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 PowerCenter comes in. We are making an important contribution to the expansion of renewable energies while leveraging our team’s concentrated battery and energy expertise.”
Elli as an Active Market Participant
The system, comprising 13 storage containers integrated into a virtual power plant, is optimised by Elli’s trading team using algorithms and direct market access.
Giovanni Palazzo, CEO of Elli, stated: “With the PowerCenter, 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.”
Supporting Electric Mobility and Energy Transition
Large-scale battery storage stabilises grids, supports renewable energy integration, and ensures electricity is available when needed. With the PowerCenter, Volkswagen expands its role from automotive manufacturer to integrated energy player, combining cell production, storage systems, digital trading platforms, and market access across divisions.
The Elli PowerCenter represents a significant step in the Group’s evolution from charging provider to integrated mobility and energy technology company.
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