Volkswagen Group has agreed a 10-year lithium supply deal with Chinese manufacturer Ganfeng Lithium Co.
Under the agreement, Ganfeng will supply a “significant” share of the lithium required for the car maker’s upcoming range of electric vehicles (EVs).
Over the next ten years the Volkswagen Group plans to launch more than 70 new pure electric vehicles. It expects that a quarter of the vehicles it sells in 2025 will be electric.
The rapid increase in vehicle electrification in the automotive industry will have a major impact on global raw material markets. The global lithium demand is expected to more than double by 2023.
European carmakers are working hard to bring battery supply closer to home. Germany has earmarked €1 billion (£860 million) to support a consortium looking to produce EV battery cells. There are also plans to fund a research facility to develop next-generation solid-state batteries. More than 30 companies have applied, including BMW and the Volkswagen Group.
Volkswagen will start taking reservations for its first ID model – the manufacturer’s new family of electric cars – in May, almost six months before the car is unveiled at autumn’s Frankfurt Motor Show.
The hatchback will start from less than €30,000 (£25,700) and it will have a range of up to 342 miles.