Volkswagen announces investments in mines
German carmaker Volkswagen plans to invest in mines to lower battery cell costs, cover half of its needs and sell them to other companies, a board member in charge of technology said.
PV's strategy is in line with a broader trend among automakers to want more control over parts of the supply chain, from power generation to raw material extraction, to secure the resources needed for electrification.
Europe's biggest carmaker wants its PowerCo battery unit to become a global battery supplier and aims to cover half of its own needs with plants located mainly in Europe and North America, Thomas Schmal told Reuters.
Ford PowerCo will begin supplying Ford cells for the 1,2 million vehicles the American giant builds in Europe on PV's MEB electric platform, Schmal said, Hina reports. Ore extraction capacities are a bottleneck for raw materials and therefore we have to invest directly in the mines,” he said.
The automaker has struck a supply partnership with mining companies in Canada, where it will build its first plant in North America. Schmall would not say what other locations they are considering or whether FW could invest directly in the mines. Getting batteries at a reasonable price is a challenge for automakers.