Batteries for e-cars – Volkswagen is mining for battery raw materials

Schmall has not yet mentioned the names and locations of mines in which Volkswagen could participate. The Wolfsburg-based car manufacturer is currently building a network of battery factories to meet the growing need for batteries with the number of electric cars.

First locations established
Up to six storage facilities will be built in Europe. Three locations have already been determined: Salzgitter, Valencia and the Canadian province of Ontario. According to previous information, Volkswagen wants to establish a battery supply chain there and plans to invest in mining companies. In Skelleftea in Sweden, the group has also concentrated the production of premium cells at battery specialist Northvolt.

It’s about independence
As a result, the Wolfsburg-based company wants to become less dependent on suppliers from Asia, which dominate the battery market. Europe’s largest car company has bundled its activities into subsidiary PowerCo, which manages the procurement of raw materials and the expansion of battery cell factories worldwide. The goal is to expand production to reduce quantities. Only in this way can e-cars become possible for a price of less than 20,000 euros, which VW is currently working on to make electromobility suitable for the masses.

The American electric car pioneer Tesla is also struggling with the fact that battery raw materials such as lithium, cobalt and nickel are becoming more expensive and is considering getting into mining, according to media reports.

“It’s a challenge to keep reducing battery costs,” said Schmall. “With the PowerCo we deploy all instruments, from raw material procurement to new technologies and scaling up.” PowerCo focuses on in-house production of battery cells in Europe and North America. In China, the automaker buys cells from local suppliers that dominate the battery market. “Its own production and external purchases will be divided roughly in half worldwide,” said Schmall.

VW wants to set the standard
He announced that Volkswagen will also sell battery cells to other customers. “In the future, we also want to enter the third market.” He assumes that there will be a few global standards for batteries in the future. “We want to set one of these standards through our high volumes and third-market business.”

VW already has a major customer in the future: Ford relies on technology from Wolfsburg for e-cars in Europe. In September, production of an electric SUV based on the modular system developed by Volkswagen will start at the plant of the American car manufacturer in Cologne. A second model will follow in 2024. Ford plans to double the volume to 1.2 million units over six years. The Indian car manufacturer Mahindra also uses the electric kit from Volkswagen.

Master core technologies
When building the battery business, you don’t have to do everything yourself, Schmall emphasizes. But you want to master the core technologies to remain independent. “At Volkswagen, we are quite good at industrializing technologies. We don’t start at the very bottom of the learning curve, but buy know-how, which gives us speed.” For example, Volkswagen cooperates with Gotion in the field of battery chemistry and has an interest in the Chinese company. Development contracts have also been awarded to the Chinese world market leader CATL and SDI from South Korea.