With new memorandum they are safe for the next decade when it comes to a question of lithium suplies.
Electric mobility is on the rise and would develop even faster, especially in Europe if resources and components would be at least a bit cheaper and more accessible. The last part mainly considers batteries due to their high prices, availability and the fact that main resources of ingredients and production is located in China. However, it looks like Volkswagen has temporarily solved the problem at least for itself.
A memorandum of understanding has been made today by German car manufacturer and Chinese company Ganfeng Lithium Co., Ltd. According to the memorandum Chinese company has become a long-term partner in providing lithium, needed for manufacturing battery cells (at least) for the next ten years. This is quite a smart movie, mad by German manufacturer, which guarantees it a steady supply of this highly material of which demands are growing day by day.
“Over the next ten years the Volkswagen Group will be launching 70- plus new pure electric vehicles. That means approximately a quarter of the vehicles we deliver in 2025 will be powered by electricity. Consequently, there will be a rapid increase in our raw material demand for cell production in the coming years. We must make sure we cover this demand at an early stage. Long-term agreements like the one for lithium, a key raw material, that we have just concluded with Ganfeng are therefore of crucial strategic significance for implementing our electric offensive,” said Dr. Stefan Sommer, Group Board Member for Components and Procurement at Volkswagen Aktiengesellschaft in official statement.
Albeit the most important, this is not the only move both sides has made recently. Apart from providing sufficient quantities of lithium Ganfeng will also take care of battery recycling and help with development of solid-state batteries just in time before the beginning of much awaited Volkswagen electrified revolution.