A volkswagen plans to invest in mines to lower the cost of battery cells, meet half of its own demand and sell to third parties, said the automaker’s board member responsible for technology.
Its strategy aligns with a broader trend of automakers seeking greater control over parts of the supply chain traditionally left to third parties, from power generation to raw material sourcing, as they compete for scarce resources they urgently need. to achieve electrification targets.
The largest automaker in Europe wants its PowerCo battery unit to become a global supplier of batteries, in addition to meeting half of its own demand with factories mainly in Europe and North America, Thomas Schmall said in an interview with Reuters.
PowerCo will start by delivering cells to ford for the 1.2 million vehicles that the automaker U.S is building in Europe on Volkswagen’s MEB electric platform, he said.
“The bottleneck for raw materials is mining capacity – that’s why we need to invest directly in the mines,” he said.
The automaker is closing supply deals with mining companies in Canada, where it will build its first battery plant in North America.
These partnerships with guaranteed funding can cut mine development time for junior miners by years, said John Meyer, senior analyst at investment bank SP Angel.
Schmall declined to comment on other locations under consideration or when Volkswagen might invest directly in mines.
Source: Moneytimes
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