VW Is on a Hunt for Resources to Remove China From Its EV Batteries – by William Boston (Wall Street Journal – June 4, 2023)


U.S. and Europe lag behind China in the global race for components essential to carmakers’ electric transition

BERLIN—Volkswagen is searching the world, from Canada to Indonesia, for supplies to make the batteries in electric vehicles it sells in the U.S. and Europe less dependent on Chinese components, a senior VW executive said.

PowerCo, a subsidiary VW created last year, is leading the company’s search for natural resources and other critical battery ingredients. Ultimately, VW wants to secure its own supplies for battery plants outside China and not have to rely on Chinese suppliers for battery materials, most of whom are in China, VW board member and technology chief Thomas Schmall told The Wall Street Journal.

“Today we are 100% dependent on China,” Schmall said, adding that VW’s goal was to reduce the share of Chinese components in the batteries it makes to 50% globally on average—meaning even less or no reliance on Chinese supplies for battery plants in Europe and North America.

Other western automakers also are trying to build batteries independent of China. The efforts underline how multinational companies are adapting as the West strives to reduce its dependence on China, both as a market and as a supplier of critical components.

For the rest of this article: https://www.wsj.com/articles/vw-is-on-a-hunt-for-resources-to-remove-china-from-its-ev-batteries-663ee99