Volkswagen has announced new strategic partnerships with three different companies, all of which are related to electric vehicle (EV) battery production.
The partnerships come as the German automaker prepares to transition their entire lineup of vehicles to electric by 2040.
The first partnership announced is with Umicore, which will supply VW with cathode materials for EV battery production. Initial production capacity will be set at 20 gigawatt-hours (GWh), eventually ramping up to 160GWh by the end of the decade.
Another partnership is with 24M Technologies. According to a press release, the company currently developing a battery that has a semi-solid electrode which is supposed to be cheaper and quicker to produce than conventional lithium ion batteries.
The third deal is with Vulcan Energy Resources for a “carbon neutral” supply of lithium from Germany until 2026.
The partnerships will help in VWs plans to build six new gigafactories in Europe by 2030.
“Volkswagen is implementing its battery strategy very consistently and at a high pace. Volkswagen’s unified cell must be at the forefront of performance, costs and sustainability right from the start. With our new partners, we are one step closer to reaching this goal. Together, we will focus on key parts of the battery value chain and develop cutting-edge technologies,” said Thomas Schmall, Member of the Board of Management of Volkswagen Group for Technology and CEO of Volkswagen Group Components.
No financial details of the partnerships were disclosed.