Volkswagen’s strategy aligns with a wider trend of car makers seeking greater control over parts of the supply chain traditionally left to third parties
Volkswagen plans to invest in mines to bring down the cost of battery cells, meet half of its own demand and sell to third-party customers, the carmaker’s board member in charge of technology said.
PowerCo will start by delivering cells to Ford for the 1.2 million vehicles the U.S. car maker is building in Europe on Volkswagen’s electric MEB platform, he said. Such partnerships guaranteeing finance can cut years off mine development times for junior miners, John Meyer, senior analyst at boutique investment bank SP Angel, said.
Acquiring batteries at a reasonable cost is a challenge for car makers like Volkswagen, Tesla and Stellantis looking to make electric vehicles affordable. Securing those resources in time, close to refineries and from places outside of China is key to winning the battery race, Geordie Wilkes of the UCL Insitute for Sustainable Resources said.It is an ambitious road map for a unit not yet producing at scale. Production will start in 2025 at PowerCo’s plant in Salzgitter, Germany, 2026 in Valencia, Spain, and 2027 in Ontario, Canada.
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