Volkswagen Group and China’s leading electric vehicle (EV) battery manufacturer Contemporary Amperex Technology Company Limited (CATL) have announced a strengthened collaboration in the areas of battery research and development (R&D), new materials applications, and component development.
The German automaker, through its Volkswagen Group China unit, aims to work closely with CATL to jointly develop cost-competitive battery products. This partnership will also extend to battery recycling, swapping, V2G (vehicle-to-grid) solutions, carbon emissions reduction, and raw material supply transparency as Volkswagen accelerates its transition to electrified vehicles globally.
In addition to the collaboration at a corporate level, Volkswagen’s local Chinese joint ventures, including SAIC Volkswagen, FAW Volkswagen, and Volkswagen Anhui, have individually signed long-term battery sourcing agreements with CATL to further strengthen their partnerships.
Volkswagen faced a 9.5% decline in sales in China last year, totaling 2.93 million vehicles, as local automakers surged ahead in the market’s shift towards new energy vehicles. By co-developing and sourcing cost-competitive batteries from CATL, Volkswagen aims to reverse this trend and regain market share in the rapidly evolving Chinese market.
This strategic partnership underscores Volkswagen’s commitment to innovation and sustainability in the electric vehicle sector. By leveraging CATL’s expertise in battery technology and manufacturing, Volkswagen is poised to offer cutting-edge solutions to meet the growing demand for electric vehicles in China and beyond.
As Volkswagen continues to expand its electrified vehicle lineup and drive towards a more sustainable future, the collaboration with CATL will play a crucial role in shaping the next generation of electric vehicles and advancing the adoption of clean energy technologies in the automotive industry.
