5.4.2019. The Volkswagen group and Ganfeng Lithium co., Ltd., with headquarters in Jiangxi (China) have signed a Memorandum of understanding for the long-term supply of Lithium for battery cells.
Accordingly, Ganfeng is to supply the Volkswagen group and its supplier for the next ten years with Lithium. For Volkswagen, it covers already today a significant part of its growing Lithium demand for batteries.
Dr. Stefan Sommer, Board member for component and procurement of Volkswagen Aktiengesellschaft, said: “In the next ten years, the Volkswagen group wants to bring more than 70 new pure E-vehicles on the road. In the year 2025, around a quarter of our is then delivered to fleet electric. According to our raw material requirements for the cell production in the coming years rapidly. This need it is necessary to secure at an early stage. Long-term agreements, as we have met now for the most important raw material of Lithium with Ganfeng, is therefore of crucial strategic importance for the implementation of our E-Offensive.“
The industry’s rapid growth in the vehicle electrification will have a significant impact on the global commodity markets. So double the global demand for Lithium, studies show that in the next few years more than wants. The Memorandum of understanding with Ganfeng contributes for the Volkswagen group, a major contribution to security of supply.
Michael Baker, head of procurement for electric mobility at Volkswagen Aktiengesellschaft, explained: “This strategic partnership with Ganfeng is the result of intensive analysis of the markets through the e-resource team of the Volkswagen group. The focus of this specialized team, the targeted relationship-building to companies in the extractive industry. Together with specially selected strategic partners, Volkswagen is working on synergies along the value chain of the HV battery. In addition to securing capacity at a competitive cost, in particular, the issue of sustainability for the group in the foreground.“
The supply with Lithium, in addition to Volkswagen, and Ganfeng agreed to work together in the future, such as battery recycling and solid batteries topics.
Volkswagen focused synergies along the entire battery value chain. (Photo: Volkswagen AG)
