Volkswagen and Chinese battery supplier Gangfeng Lithium have signed a letter of intent stating the intention for Gangfeng to supply its lithium ion battery cells over the next decade.
Gangfeng is already the preferred supplier for several companies such as Tesla, LG, Chem and BMW.
The need for a secure supply of lithium batteries has been driven further by the EU emissions limits which are set to take place next year an toughen further by 2030.
Dr. Stefan Sommer, Group Board Member for Components and Procurement stressed the importance of securing lithium at an early stage.
“Approximately a quarter of the vehicles we deliver in 2025 will be powered by electricity. Consequently, there will be a rapid increase in our raw material demand for cell production in the coming years. We must make sure we cover this demand at an early stage. Long-term agreements like the one for lithium, a key raw material, that we have just concluded with Ganfeng are therefore of crucial strategic significance for implementing our electric offensive”.