CATL and Volkswagen have entered a strategic Memorandum of Understanding (MOU) aimed at enhancing their collaboration in the development of advanced lithium batteries for new energy vehicles (NEVs). This agreement focuses on joint research and development efforts, including the creation of new materials and components essential for next-generation battery technologies.
Under the terms of the MOU, both companies will work together to develop battery concepts and products that are both technologically advanced and cost-effective. The partnership will explore various areas such as battery recycling, battery swap systems, vehicle-to-grid (V2G) technology, carbon emission reduction, and ensuring transparency in the supply of raw materials. These initiatives are intended to accelerate the electrification of vehicles and support sustainable practices within the industry.
Volkswagen has announced that its divisions—Volkswagen China, SAIC Volkswagen, FAW Volkswagen, and Volkswagen Anhui—will participate in this strategic partnership with CATL. By leveraging CATL’s expertise in battery technology, Volkswagen aims to better capture market opportunities and advance its battery strategy, particularly targeting the Chinese market with high-quality and affordable NEV offerings.
CATL remains the largest power battery manufacturer globally, holding a 37.9% market share in 2024, according to SNE Research, a South Korean market research firm. In contrast, Volkswagen delivered 9.03 million vehicles worldwide in 2024, reflecting a 2.3% decrease from the previous year. Of these, battery electric vehicle (BEV) models accounted for 744,800 deliveries, marking a 3.4% year-on-year decline.
This new partnership builds on previous collaborations between CATL and Volkswagen. In June 2021, CATL became the first power battery manufacturer to receive certification from Volkswagen’s cell testing laboratory, establishing a foundation for ongoing cooperation. Additionally, CATL is expected to announce a new joint venture battery plant in Europe later this year, further solidifying the partnership’s impact on the global EV market.
The collaboration between CATL and Volkswagen reflects both companies’ commitment to advancing battery technology and promoting sustainable mobility solutions. By combining their strengths, they aim to drive innovation, reduce costs, and enhance the performance of electric vehicles, thereby supporting the broader transition to clean energy in the automotive sector.
Source: CNevPost
