Automakers are engaged in a scavenger hunt. They seek the next raw material source or supply chain collaboration that will set them on solid soil for a little longer until some global relief comes through.
Squad goals. Volkswagen has formed deals with two Chinese companies that may provide something more than temporary relief from the pinch. The $33B push will build a network of battery cell factories and secure direct access to cobalt and nickel. In the final stage of the expansion, the factories will source and produce 160 gigawatt-hours of EV batteries. The cooperation will reduce the battery cost by 30-50% by controlling the process from material sourcing to battery construction.
Squad grows. VW also announced a $7.1B plan to invest in EV production in North America through 2027. The company will introduce 25 new BEVs across the group's brands. They will also move to localize significant design and engineering responsibilities, meaning VW may produce EVs unique to the US, as consumer desires lead them.
Telling it like it is - We looked it up: 1 gigawatt could power 750,000 homes for an hour.