Volkswagen Pushes Into Energy Storage on Slow EV Battery Demand

Volkswagen AG is broadening its battery ambitions beyond electric vehicles into large-scale energy storage and trading as global EV demand falls short of expectations.

Europe’s biggest automaker started operations at its first major storage facility on Monday in Salzgitter, Germany. The setup, part of VW’s Elli energy subsidiary, can supply as many as 20,000 homes for roughly two hours.

The site connects directly to the grid and will also be used for energy trading on the European power exchange EPEX SPOT. It uses cells from Volkswagen’s in-house PowerCo division, which once targeted as many as seven EV battery plants ...