Industry/Official

Volkswagen secures lithium supplies from China

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The rapid increase in electrification in the automotive industry will have a major impact on global raw material markets. The global lithium demand is expected to be more than double by 2023, and Volkswagen wants to be prepared.

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VW Group and China’s Ganfeng Lithium have signed a Memorandum of Understanding on long-term lithium supplies for battery cells. Under the agreement, Ganfeng will supply lithium to VW and its suppliers for the next 10 years.

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According to Stefan Sommer, Group Board Member for Components and Procurement at Volkswagen,  “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.”

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In addition to the arrangements on lithium supplies, Volkswagen and Ganfeng also agreed to cooperate on future topics such as battery recycling and solid-state batteries.

Also Read: Volkswagen’s interesting history of electric mobility

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