Volkswagen Partners With Three More Battery Companies For EVs

It is no secret that Volkswagen has been all-in on electric cars for a while. It has invested in Quantum Scape for solid-state batteries but now it has locked agreements with Umicore, 24M Technologies, and Vulcan Energy Resources. Volkswagen wants to have a vertically integrated battery supply chain and these three companies are going to be critical for it in establishing that. 

"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, a member of the Volkswagen Group board of management and the CEO of Volkswagen Group Components.  

Volkswagen already has its ID family of EVs, and its other mass-market brands Skoda and SEAT also have joined the EV bandwagon. Its premium brands Audi and Porsche are also all in on electric powertrains while it has even merged Bugatti with Rimac with Porsche becoming a major shareholder in the new hypercar brand Bugatti Rimac. 

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Europe's EV Battery Strategy Threatened By Supply Chain Gaps

Umicore is a Belgium-based cathode provider which will help it with EV battery cell production in Europe that will start in 2025. It has a 20 GWh facility at Salzgitter, Germany. Its joint venture will scale the capacity and will have an annual production of 160 GWh by 2030. That will be capacity for 2.2 million BEVs. 

Then its partnership with 24M technologies which is a startup that has been spun out of MIT is for semisolid lithium-ion technology. These cells use 40 percent less production area and are more efficient for recycling and use less CO2 during the battery production stage. 

Vulcan Energy Resources is a European lithium producer which is a critical element for the manufacturing of batteries. It is planning on becoming the first one to do so with net-zero greenhouse gas emissions. Volkswagen has closed a deal with it for the supply of lithium hydroxide over a period of five years beginning in 2026.