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PowerCo, Volkswagen’s battery company, has been ramping up its cell production in Europe and North America, and the St. Thomas site in Canada is due to begin construction in 2024.

In a conversation with Automotive Logistics at ALSC Mexico, Sören Stade, head of Logistics at Project St. Thomas, PowerCo, says the facility is aiming to source most of its material locally from North America. However, issues at both the US and Mexico borders could cause problems. To mitigate this, PowerCo will use visibility solutions and work with other VW Group divisions.

One of PowerCo’s missions is to be on the cutting edge of supply chain logistics, and Stade says the brands in VW Group have always exchanged best practices and knowledge to achieve this. 

”In PowerCo, the battery cell production is a highly automated process and we are definitely going to count on introducing AGVs [automated guided vehicles] and conveyor systems on a large scale to automate our logistics flows within the factory,” Stade tells Christopher Ludwig, editor-in-chief, Automotive Logistics. “So exchange within the VW Group will definitely help us to improve the process and the outcome of our facility.”

He says that PowerCo is vertically integrating into the supply chain, from the mines into its production facilities, and introducing visibility and resilience into the supply chain, which requires new digital technologies. “This is actually something that we from the battery cell production can introduce into the ‘old world’ of automotive logistics,” he says.  

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Automotive Logistics & Supply Chain Mexico 2023 took place December 5-7 at the Marquis Reforma Hotel, Mexico City. Click here for more highlights and insights. The next event in Mexico returns to Mexico City November 12-14, 2024.