Volkswagen signs three new deals to secure EV battery supply to 2030

Volkswagen says its new partnerships will help it to reach an annual production capacity of 2.2 million electric cars by the end of the decade

Volkswagen badge

Volkswagen has signed new partnerships with three key battery specialists, in a bid to secure the raw materials it needs to build its rapidly expanding electric vehicle lineup.

Volkswagen says these deals will allow it to ramp up its EV manufacturing, with the ultimate aim of reaching an annual production capacity of 2.2 million electric cars by 2030.

These deals form part of Volkswagen’s battery expansion plan - estimated to cost around €30 billion (£25.6 billion) - that will also see the Group open six new gigafactories in Europe before the end of the decade. It is intended to provide the firm with a reliable supply of cells to keep production rolling.

The partnerships should generate enough batteries (and therefore vehicles) to compete with the EV stalwart brand, Tesla. Indeed, Volkswagen’s latest business model looks remarkably similar to Tesla’s, which has been producing its batteries in-house since 2016.

Volkswagen’s first pairing is a joint venture with the Belgian mining company, Umicore, which will provide the cathodes for the manufacturer's battery packs. More importantly, all of the materials are said to be sustainably sourced, which falls in line with Volkswagen’s climate targets.

The German brand has also thrown investment at the Cambridge-based battery research centre 24M, which is working on a new dry coating process that will streamline production of battery cells by trimming several processes from the conventional production method.

The process also claims to reduce the CO2 footprint of EV batteries and make it easier to recycle the cells once they’ve reached the end of their useful lives. Volkswagen now owns a subsidiary of the company, which will further develop and upscale the technology.

Finally, Volkswagen has put together a long-term agreement with Vulcan Energy Resources to secure a supply of CO2-neutral lithium – which is a big area of contention in discussions surrounding the environmental impact of electric vehicles.

The partnership will see Vulcan Energy supply Volkswagen with eco-friendly lithium (sourced locally to the brand from the Upper Rhine Valley that borders Germany, Switzerland and France) for a period of five years, starting from 2026. However, an extension to the deal is already being discussed.

Looking to buy an all-electric car? Here are the best electric cars on sale now...

Recommended

Volkswagen Group EV sales double in 2021 despite global chip shortage
Volkswagen HQ
Volkswagen

Volkswagen Group EV sales double in 2021 despite global chip shortage

Despite fewer overall car sales, the Volkswagen Group delivered 452,900 EVs across all brands in 2021, almost twice that of the previous year
12 Jan 2022
Volkswagen confirms Project Trinity will enter production in 2026
Volkswagen Project Trinity teaser
Volkswagen

Volkswagen confirms Project Trinity will enter production in 2026

It’ll be built at the firm’s Wolfsburg plant, which will soon be transformed into an EV hub that will also produce the ID.3 electric hatch from 2024
13 Dec 2021
All-electric Volkswagen ID. California campervan announced
Volkswagen ID Buzz concept
Volkswagen

All-electric Volkswagen ID. California campervan announced

Volkswagen confirms its ID. Buzz-based camper will be launching in “the second half of this decade”, securing jobs at the firm’s Hannover plant
9 Dec 2021
Volkswagen Aero B: 2023 Passat-sized EV spotted again
Volkswagen ID Aero B spy - front
Volkswagen

Volkswagen Aero B: 2023 Passat-sized EV spotted again

Prototypes for production version of Volkswagen ID. Vizzion concept seen testing in moderate disguise, will rival the Tesla Model 3
30 Nov 2021

Most Popular

'The best car in the world is Korean'
Opinion Mike Rutherford
Opinion

'The best car in the world is Korean'

Mike Rutherford praises Hyundai and Kia's joint win in Best Cars of the Year
16 Jan 2022
Best electric cars to buy 2022
Best electric cars
Electric cars

Best electric cars to buy 2022

There are more electric cars than ever to choose from, so we've picked some of the best you can buy in the UK now
10 Jan 2022
Top 10 best hybrid cars to buy 2022
Best hybrid cars - header image
Hybrid cars

Top 10 best hybrid cars to buy 2022

Hybrid power is the way forward if the car industry is to be believed so we've found the top 10 best hybrid cars to buy now...
2 Jan 2022