PowerCo is scouting sources for securing raw materials for the plant amid rising input prices and logistical challenges, the report said, citing Kai Alexander Mueller, CFO of the unit.
The report noted that the company plans to tie up with Belgium-based miner Umicore SA for sourcing cathode materials, Robert Bosch for machinery, and Vulcan Energy Resources Limited for battery-grade lithium hydroxide.
PowerCo began work on its first European plant last week and also disclosed plans to invest over 20 billion euros ($20.06 billion) in five proposed battery manufacturing plants.
Benzinga’s Take
Volkswagen’s quest to vertically integrate into batteries reflects its efforts to reduce reliance on Asian suppliers, which nearly monopolize the industry.The time might not be apt, given the surrounding macroeconomic uncertainty and supply chain issues. The move, however, is likely to be a long-term positive and a strategic one, given the importance of batteries in electric vehicle manufacturing.
