Volkswagen Has Signed A Supply Agreement To Get German CO2-Neutral Lithium

by AutoExpert   |  9 December, 2021

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According to Volkswagen's recent announcements, the automaker would soon enter into three independent but connected partnerships. They'll help it get CO2-neutral lithium for batteries, create its own cathode material, and enhance automotive battery production procedures, all of which will aid in the development of electric vehicles.

The company claims it has reached an arrangement with Vulcan Energy Resources Ltd for a long-term supply of lithium hydroxide for the next five years. VW hopes to use it to meet the rising demand for battery cells in Germany and Europe. Vulcan Energy intends to use local geothermal brine to extract lithium from the Upper Rhine Valley.

Volkswagen

The "Zero Carbon Lithium" initiative intends to create a sustainable, regional supply of the material from Europe's biggest deposit without the use of fossil fuels or evaporation ponds. VW will also form a joint venture with Umicore to provide cathode materials to its European cell facilities. The agreement will have a 20 GWh initial production capability for VW's gigafactory in Salzgitter, Germany, starting in 2025.

By the end of the decade, the joint venture hopes to have a production capacity of up to 160 GWh, enough to supply 2.2 million electric vehicles annually. Through this agreement, the carmaker also hopes to cut cathode material costs, lowering EV prices in the long run.

Volkswagen

Furthermore, Volkswagen has invested in 24M Technologies, a battery company located in Cambridge. Its semi-solid battery-making technique claims to save costs, improve recycling, and minimize the carbon emissions of battery-making plants.

According to VW, the technology is an advance over dry coating, and the company plans to use it to reduce battery costs. To do so, it will create a new division interested in creating and scaling up automotive technology, which it hopes to be ready in the second part of this decade.

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