Volkswagen and Mercedes-Benz gained a major advantage in sourcing electric vehicle battery materials today. On Tuesday, the German automakers secured a stream of EV battery materials as it entered a cooperation agreement with the Canadian Government.
The partnership will secure access to materials that are crucial to producing electric vehicle batteries, Reuters reported. Lithium, nickel, and cobalt will be supplied as part of the deal.
Having stable access to the required and crucial battery materials is a significant part of building EVs. Too many companies have had issues getting their hands on EV battery materials, which has stagnated production for some automakers.
Nearly every automaker out there is attempting to catch Tesla, which has been able to build its vehicles with relative ease as it is incredibly vertically integrated. Tesla also has several partnerships with battery cell suppliers and sources raw materials from a number of mining companies. The only thing delaying Tesla’s vehicle delivery forecasts is the company’s inability to keep up with its order log, which gets longer every day.
Financial details are currently unknown, but the partnership is confirmed as German Chancellor Olaf Scholz and several corporate representatives signed memorandum of understanding agreements.
Volkswagen aims to increase EV production over the next eight years with a massive investment into six large battery cell manufacturing facilities in Europe. The six facilities will have a capacity of 240 GWh.
Mercedes-Benz is scaling nearly every part of the electric vehicle supply chain currently. The company has launched a new battery plant in Bibb County, Alabama, and has opened a €200 million software facility in Sindelfingen.
Volkswagen’s portion of the memorandum of understanding includes the ramp-up of materials like nickel-cobalt-aluminum batteries and nickel-cobalt-manganese batteries, the report stated. Meanwhile, Mercedes-Benz is planning to explore a partnership with Rock Tech Lithium, which could supply the company with 10,000 tonnes of lithium hydroxide annually.
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