Volkswagen joins lithium battery Vulcan clientele

Volkswagen Group, the world's largest automaker by revenue and the largest company in Germany, is the latest addition from the mobility world to the clientele of the lithium battery make Vulcan.

In an agreement announced on Wednesday the two companies have signed a  binding lithium hydroxide offtake agreement in which Volkswagen will purchase a minimum of 34,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over the duration of the agreement.

“Volkswagen Group and Vulcan have also agreed to a first right of refusal to invest in additional capacity in the Zero Carbon LithiumTM Project. Conditions precedent include successful start of commercial operation and full product qualification,” said the companies in a statement.

The duration of the agreement is an  initial five-year term, starting the  commercial delivery in  2026. The companies said that the pricing will be based on market prices on a take-or-pay basis.

“Through this agreement, Vulcan Energy’s Zero Carbon LithiumTM business will become a key enabler of Volkswagen’s world-leading target to produce carbon neutral EVs, including all the raw materials in the battery supply chain. We look forward to working closely together with Volkswagen, the world's largest automaker by revenue and the largest company in Germany, to build sustainable, local lithium supply for the German and European automotive sector,” said Vulcan’ Managing Director Dr Francis Wedin in a statement.

Volkswagen has in Europe alone, six gigafactories with a total production capacity of 240 GWh to be built by the end of the decade.