Europe’s automotive and energy transition is colliding at the battery cell. Volkswagen Group, through subsidiaries PowerCo and Elli, is now positioning itself at the center of this shift with three announcements: a test vehicle running on QuantumScape’s solid-state battery, the series-ready Unified Cell slated for mass-market EVs, and a 40 MWh stationary energy storage system to be connected in Salzgitter in 2025.
The timing reflects the growing urgency of Europe’s bid to secure battery sovereignty. With the EU aiming for 100% new zero-emission car sales by 2035, and with grid operators struggling to integrate intermittent renewables, the performance and cost profile of the next generation of batteries is becoming a defining factor in industrial competitiveness.
The collaboration between PowerCo, Audi, Ducati, and QuantumScape has produced a motorcycle demonstrator running on lithium-metal solid-state cells. The prototype, adapted from Ducati’s V21L platform, carries up to 980 QSE-5 cells. This marks one of the first tangible applications of solid-state technology outside controlled lab conditions.
Compared with conventional lithium-ion cells, the QuantumScape design replaces the graphite anode with a lithium-metal anode and uses a ceramic separator. Energy density climbs significantly, charging speeds accelerate, and safety profiles improve due to the absence of flammable liquid electrolytes. Industry analysts note that widespread commercialization could extend EV ranges and reduce reliance on costly raw materials such as cobalt and nickel, but scale-up hurdles remain.
Unified Cell as a Scalable Platform
Parallel to the solid-state experiment, PowerCo unveiled its production-ready Unified Cell, to debut in Volkswagen’s Electric Urban Car Family across the VW, ŠKODA, and CUPRA brands. With an energy density of roughly 660 Wh/l—around 10% higher than previous chemistries—paired with a cell-to-pack architecture, the system promises ranges up to 450 kilometers and sub-25-minute fast charging for small vehicles.
The Unified Cell is designed as a modular global platform: the same format can accommodate chemistries from cost-competitive LFP to high-performance solid-state in future models. Volkswagen projects the design could underpin 80% of its EV lineup. The ability to industrialize a single cell type at scale is seen as critical for driving down costs, a challenge that continues to restrain mass-market adoption of EVs in Europe.
Energy Storage Beyond Vehicles
The group’s energy subsidiary Elli is extending the strategy beyond mobility. In December 2025, its Salzgitter PowerCenter will go live with 20 MW of power and 40 MWh of storage capacity, using repurposed PowerCo battery packs. This grid-connected installation will participate in balancing markets, helping stabilize renewable-heavy grids that face volatility from fluctuating wind and solar output.
For Europe’s energy transition, stationary storage is becoming as strategic as EV batteries. The International Energy Agency projects the EU will require more than 200 GW of storage by 2030 to meet renewable targets. With battery supply chains already stretched, Volkswagen’s entry into grid-scale storage underscores the convergence of automotive and energy sectors.
For Volkswagen, the strategy consolidates three fronts: experimental solid-state cells that could unlock step-change performance, a scalable Unified Cell to cut costs in the near term, and stationary storage that supports energy market integration.
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