Volkswagen Expands Battery Business Into Energy Storage and Energy Trading

Published: Mar 13, 2026 16:08

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Volkswagen, Europe’s largest automaker, is expanding the ambitions of its battery business from EVs into utility ESS and energy trading, as global EV demand has fallen short of previous expectations. On Monday, Volkswagen launched its first utility ESS facility in Salzgitter, Germany. The project belongs to Volkswagen’s energy subsidiary Elli and can supply power to up to 20,000 households for about two hours. The facility is directly connected to the power grid and will also be used for energy trading on the European power exchange EPEX SPOT. The batteries used come from Volkswagen’s in-house PowerCo division. As battery suppliers cut prices and EV growth slows down, Volkswagen is seeking new sources of battery revenue.

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