Electric Vehicle

Volkswagen Group signs MoU with Ganfeng, secures lithium supplies

Volkswagen group over the next ten years aims to launch 70-plus new pure electric vehicles. Consequently, there will be a rapid increase in raw material demand for cell production in the coming years.

The company looks to fulfill this demand by signing long-term agreements with key suppliers. It has recently signed memorandum of understanding with Chinese manufacturer Ganfeng for long-term lithium supplies as lithium is a key raw material.

The company considers the agreement of crucial strategic significance and it is expected that 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. In light of this, the agreement with Ganfeng is an important milestone in supply security for the Volkswagen Group.

In addition to the arrangements on lithium supplies, the companies have also agreed to cooperate on future topics such as battery recycling and solid-state batteries.

Source: Press Release

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