Reports have surfaced about Volkswagen exploring the possibility of joining a German battery cell consortium, with the topic being discussed during a supervisory board meeting set to take place later this week.
Even though a spokesman for the automaker has declined to comment, we know that VW CEO Herbert Diess feels that Germany should wean itself off its dependence on Asian battery supplier, as reported by Automotive News Europe.
VW has previously signed multi-billion euro battery cell supply contracts with LG Chem and China’s Contemporary Amperex Technology, although now, the German government is looking to form a multi-company consortium designed to meet the rising demand for batteries in Europe, as automakers are pushing to launch fully-electric vehicles.
A total of 1 billion euros ($1.2 billion) has been earmarked by the German government in support of this consortium, which will focus on the production of battery cells, as well as funding a research facility to develop next-generation solid-state batteries.
While there have been major developments in lithium ion technology these past few years, companies are looking for ways to build more stable and powerful batteries using less raw materials. Some of the companies considering building a new factory include German battery maker VARTA Microbattery, chemical giant BASF and Ford’s German subsidiary Ford-Werke, as per reports.
Currently, certain German automakers are being supplied with Polish-built EV batteries by South Korea’s LG Chem.