Volkswagen’s battery unit, PowerCo, is postponing considerations for a stock market listing until after 2026, signaling a cautious approach toward an initial public offering (IPO). Thomas Schmall, head of the battery division, stated that an IPO would only be considered once the factories are operational and the standardized battery cell is in use. Volkswagen had separated its battery unit in mid-2022, aiming to invest €20 billion ($21.7 billion) with partners to establish plants with a cumulative capacity of 240 gigawatt hours by 2030. PowerCo plans to open three battery cell factories in Salzgitter, Valencia, and Ontario in 2025, 2026, and 2027, respectively, and anticipates utilizing its unified battery cell design in at least 80% of its electric cars from 2025.
The decision to delay the IPO reflects Volkswagen’s strategic focus on ensuring the successful functioning of its battery operations and widespread adoption of the unified battery cell design before entering the stock market. The move aligns with the broader industry trend, where automotive companies are grappling with capital-market enthusiasm for electric vehicles (EVs) as sales growth slows and financial losses accumulate. The decision emphasizes Volkswagen’s commitment to solidify its position in the EV market and compete effectively with rivals, particularly Tesla, before pursuing a public listing for its battery unit.