Volkswagen to invest in mines in bid to become global battery supplier

Volkswagen AG, the German automotive giant, has announced plans to invest in mining operations in a bid to become a major global battery supplier. The company has stated that it will invest in cobalt and lithium mines, which are key components of the lithium-ion batteries used to power electric vehicles.

The move signals Volkswagen’s ambition to expand its position in the global battery market, challenging established rivals such as Panasonic, Samsung, and LG Chem. Volkswagen currently operates a battery factory in Germany and plans to open additional sites in Europe and China.

The company is looking to secure a reliable source of cobalt and lithium, a challenge faced by many electric vehicle manufacturers due to limited supplies of the minerals. According to experts, the world’s cobalt supply is concentrated in the Democratic Republic of Congo, where production is often hampered by political instability. As a result, Volkswagen is looking to diversify its sources of the minerals through investment in mining operations.

The company has not yet revealed the exact locations of the mines, but it is expected to target areas with abundant supplies of cobalt and lithium. Volkswagen has also not disclosed the size of the investment.

The move underscores Volkswagen’s commitment to becoming a leading player in the electric vehicle market. The company has stated that it plans to produce 22 million electric vehicles over the next decade, and its investments in mining operations could be a critical step toward achieving that goal.

Analysts have hailed the move as a positive step for Volkswagen, with some noting that the company’s efforts to secure a reliable source of cobalt and lithium will put it in a stronger position to compete with its rivals.

If successful, Volkswagen’s investment in mining operations could prove to be a landmark moment in the journey to becoming a top global battery supplier.