In shift towards electric vehicles, Volkswagen looking for cobalt contracts – Ars Technica


Volkswagen is looking for serious, long-term contracts with cobalt producers, according to a Reuters report on Friday. Cobalt is a common component in lithium-ion rechargeable batteries, and it’s projected to command more and more demand as electric vehicles are adopted in greater numbers. Currently cobalt is trading at about $26 per pound.

Securing reserves of the kinds of materials used in batteries will be key to Volkswagen’s future growth. After the so-called “dieselgate” scandal of 2015, Volkswagen Group pledged to pivot away from diesel to electric vehicles (EVs). The German automaker has said it wants to produce up to 3 million electric vehicles by 2025 and offer 80 electric vehicle models across all 12 brands by 2030. If VW Group succeeds, it would be a considerable feat given that so far there are only about 2 million EVs of any brand on the road worldwide.

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