VW To Partner With Two Chinese Companies To Cut Battery Prices

VW To Partner With Two Chinese Companies To Cut Battery Prices
VW To Partner With Two Chinese Companies To Cut Battery Prices

German auto giant Volkswagen has announced that it has agreed to form two joint companies with Chinese partners to strengthen it in the electric battery field. As it is known, China, the world's largest automobile market, has become the world's largest market in this field thanks to its policy of encouraging electric car production.

VW, which has more than quadrupled its electric vehicle sales in China in a year, expects to sell 2025 million units of new energy vehicles in this country by 1,5. VW Group, which intends to strengthen its position in this field and secure itself in battery supply, announced in a statement that it will establish two joint companies with Chinese companies Huayou Cobalt and Tsingshan Group.

Headquartered in Wolfsburg, Germany, the company stated that thanks to these two partnerships, the cost of each battery will be reduced by 30 to 50 percent in the future. One of the Chinese partners, Huayou, specializes in materials for lithium-ion batteries, while Tsingshan is a giant in the field of nickel and stainless steel.

The first joint ventures to be established between VW and these two companies will be jointly established in Indonesia. The first joint venture will work in the production of nickel and cobalt, the two metals required for battery manufacturing. The second partner company will be established only in partnership with Huayou and will specialize in the purification of these two raw materials.

VW had already announced its investment of more than 2 billion euros in China in 2020. He would split this amount in half between an automobile business and a local battery manufacturer called Gotion High-Tech. VW announced a year ago that it had signed a ten-year deal with a Chinese group called Ganfeng to supply lithium.

Source: China International Radio

Related Ads

Be the first to comment

your comment