CATL and Volkswagen will jointly develop cost-competitive battery products and cooperate in areas including battery recycling and battery swap.
CATL (SHE: 300750) recently signed a strategic cooperation Memorandum of Understanding (MOU) with Volkswagen to deepen ties in the areas of lithium battery research and development for new energy vehicles (NEVs), new materials, and parts development, the Chinese battery maker announced today.
The companies will jointly develop technologically advanced and cost-competitive battery concepts and products, CATL said.
In the future, the two companies will further explore cooperation in areas including battery recycling, battery swap, V2G (vehicle-to-grid), carbon emission reduction, and transparency in raw material supply to drive accelerated electrification, the battery maker said.
Separately, Volkswagen said in its statement that Volkswagen China, SAIC Volkswagen, FAW Volkswagen and Volkswagen Anhui signed a MoU with longtime supplier CATL to establish a strategic partnership.
The Volkswagen Group will work with CATL to develop cost-competitive battery concepts and products, the German auto giant said.
Volkswagen will better capitalize on market opportunities and advance its battery strategy to provide Chinese consumers with cost-effective and high-quality NEV products, it said.
CATL is the world's largest power battery maker, with a global share of 37.9 percent in 2024, according to South Korean market researcher SNE Research.
Volkswagen is one of the world's largest automotive giants, delivering 9.03 million vehicles in 2024, down 2.3 percent year-on-year, according to data it previously published.
Volkswagen's battery electric vehicle (BEV) models delivered 744,800 vehicles globally in 2024, down 3.4 percent year-on-year.
The automaker delivered 2.928 million vehicles in China in 2024, down 10 percent year-on-year.
Volkswagen and CATL previously had a partnership. In June 2021, CATL said it received certification from Volkswagen's cell testing laboratory, making it the first power battery maker in the world to receive the certification.
Gotion High-tech, in which Volkswagen is the largest shareholder, is the carmaker's other major power battery supplier.
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