Published By : 24 Nov 2017 | Published By : QYRESEARCH
Volkswagen AG is upping its search of battery metals supplies for long-term it will require to support the power electric vehicles across its complete range.
The leading automaker in the world has invited traders and producers of cobalt, one of the year’s top performing metals, for negotiations and talks at its headquarters in Germany this week, sources close to the matter said. Purchasing vital battery elements might not be as easy as it was thought to be – after proposing a tender in the month of September, the firms has since then eased up its demands for the offers at a cut down fixed rates, said the sources, who refused to give up their identities as all the talks are private and confidential.
Volkswagen are in the later stages of intensive talks with the manufacturers of materials for electric vehicles, the company stated in an email, also adding that the negotiations will also deal with the sustainability and transparency compliance in the supply chain of commodities.
Conventionally used for hardening steel, the ability of cobalt as an electrical conductor has turned it into an important part of the rechargeable batteries. This has left the users scrambling to get hold of supplies, majority of which come from the Democratic Republic of Congo. Getting hold of cobalt purchases for long-term will be very important for Volkswagen as the company is planning to invest over US$40 billion (34 billion euros) over the next five years as a plan to enter into the autonomous driving systems and battery powered vehicles with full force.