VW and CATL have signed a memorandum of understanding to jointly develop high-performance batteries at competitive costs in China.
The agreement now in place includes solutions for rapid battery swapping as well as new recycling processes. Furthermore, the partnership between VW and CATL will enable both companies to collaborate in achieving greater transparency in the raw materials supply chain and in technology related to Vehicle-to-Grid (V2G).
“Our main task is to build a strong local supply system. This is also a crucial part of the Group’s strategy ‘In China, for China’”, said the executive vice president of the VW Group China, Alfonso Sancho, as quoted by local media.
VW and CATL did not disclose the investment amounts for this partnership, which is seen as a way for the VW Group to reverse the decline in sales in China, where its deliveries fell by 10%, to 2.9 million vehicles in 2024.
The strategy also includes a joint venture with Xpeng to develop a new electric architecture for Chinese vehicles, as well as the construction of a fast-charging network in China.
