Volvo in Advanced Talks on Possible Lithium Mining – by William Boston (Wall Street Journal – February 9, 2023)

BERLIN—Volvo Car AB is in advanced talks with some of the biggest mining companies, including over potential stakes in lithium mining or processing operations, Chief Executive Jim Rowan said, joining the auto-industry-wide race to secure the minerals and metals needed to power electric vehicles.

“Right now, we already have advanced conversations with some of the big miners, as well as the processing factories that process lithium,” Mr. Rowan said, adding that Volvo would decide in the coming months whether to engage in “long-term deals and long-term price negotiations for supply, or whether you want to make an equity investment.”

Volvo is the latest car maker to consider taking direct equity stakes in suppliers of lithium, a central ingredient for making the batteries that power electric cars. The demand for raw materials such as lithium and cobalt as auto makers shift to electric vehicles is rising fast, and has led to higher prices.

Shares of the Swedish car maker, which is majority owned by China’s Zhejiang Geely Holding Group, rose 1.37% in Stockholm trading Thursday.

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