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

Volkswagen AG is set to invest in the mining of key minerals used to make electric vehicle (EV) batteries, in a move to become a global supplier of the technology.

The German auto manufacturer announced it will collaborate with Swedish mining company Northvolt to secure access to Lithium, Cobalt and Nickel, which are essential components of EV batteries.

The companies intend to create a supply chain for the minerals from “responsible” mining operations.

“Volkswagen is developing itself into a globally leading provider of sustainable mobility,” said Chief Executive Officer Herbert Diess in a statement. “To achieve this, we must secure access to key battery cell materials.”

The two companies are not disclosing the financial details of the partnership, but the investment will include an equity stake in Northvolt, as well as the creation of joint ventures in the mining sector.

The pact comes as demand for EV batteries is rapidly increasing. Last year, sales of EVs worldwide grew by over 50%, and analysts expect the trend to continue.

Volkswagen is attempting to gain an advantage over rivals such as Tesla and Daimler, which have both built their own supply chains for minerals.

“We are the first carmaker to meaningfully address the issue of ensuring sufficient supplies of raw materials for battery cells,” Diess said.

The company hopes to have secured a global supply chain of the minerals by 2025.

Volkswagen AG intends to invest in the mining of pivotal minerals required for the production of electric vehicle (EV) batteries, in a bid to become a global supplier of the technology.

The German auto manufacturer declared its collaboration with Swedish mining venture Northvolt, to acquire Lithium, Cobalt and Nickel, all of which are essential components of EV batteries.

The organizations will fabricate a supply of the minerals from “responsible” mining operations.

Chief Executive Officer Herbert Diess remarked: “Volkswagen is advancing itself to a globally leading provider of sustainable mobility. In order to realize this, we must guarantee access to crucial battery cell materials.”

No financial details of the partnership have been revealed, however the investment will feature an equity stake in Northvolt, in addition to the formation of joint ventures in the mining sector.

Demand for EV batteries is escalating, with sales of EVs worldwide soaring by over 50% last year, and experts expect the trend to continue.

Volkswagen is contesting to secure a lead over rivals such as Tesla and Daimler, which have constructed their own supply chains for minerals.

Diess asserted: “We are the first carmaker to suitably address the issue of granting ample supplies of raw materials for battery cells.”

The company expects to have established a global supply chain of the minerals by 2025.