The Volkswagen Group (FSE: VOW) announced on Wednesday its strategic partnerships with three separate industry firms as it aims to join the foray of “the industrialization of battery technology.” The move follows the company’s announcement in March 2021 regarding its plan for in-house development and production of battery cells for electric vehicles.
The German automaker is partnering with Belgium-based cathode materials provider Umicore, US-based battery startup 24M Technologies, and Australia-based cleantech firm Vulcan Energy Resources.
The company is looking to establish a joint venture with Umicore for its supply chain of cathode materials, starting an initial 20 gigawatt-hour production capacity at the automaker’s Salzgitter factory by 2025. The venture’s goal is an annual production capacity of 160 gigawatt-hours, or approximately powering 2.2 million battery electric vehicles, by the end of the decade.
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On the other hand, the firm is planning to invest in 24M Technologies to industrialize its proprietary semi-solid dry coating process on automotive batteries. The battery start-up, a spin-off from the Massachusetts Institute of Technology, is part of the inked battery module development venture between manufacturer FREYR and energy storage firm Eguana Technologies.
The Wolfsburg-headquartered company is also signing an agreement with clean energy firm Vulcan Energy for a 5-year contract of lithium hydroxide supply starting 2026. The latter is currently working on producing CO2-free lithium from the Upper Rhine Valley in Germany.
This announcement comes a day after reports have surfaced that the company is mulling over a possible initial public offering for luxury car brand Porsche to fund its electric vehicle roadmap.
In July 2021, the company committed to cease selling vehicles with combustion engines by 2035.
Information for this briefing was found via The Volkswagen Group and Electrek. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
