To meet the high-precision positioning and navigation requirements of automated guided vehicles (AGV) in environments such as factories and workshops, this study utilizes ultra-wideband (UWB) positioning technology and designs a multi-tag differential localization algorithm to enhance the positioning accuracy of AGV. Starting from the current research status of AGV positioning and navigation, the paper provides a detailed introduction to the concept, process, and practical applications of the UWB differential localization algorithm. The maximum static positioning accuracy for UWB is 64 mm, and the maximum dynamic positioning accuracy is 222 mm, thereby meeting the requirements for AGV positioning and navigation.