Volkswagen teams up with China's CATL to work on EV battery development.

Volkswagen has signed a deal with China's CATL to collaborate on EV battery research and development as well the development of new materials and auto parts.

Volkswagen AG
21 February 2025 11:16:27

Source: Sharecast

VW also said it was working separately with CATL to come up with "cost-competitive" battery concepts and products.

The companies said they are jointly developing innovations in the battery recycling and vehicle-to-grid (V2G) markets, among other things.

The strategic partnership comes amid rising competition in the Chinese EV industry, with domestic brands innovating at a rapid pace to launch cheaper vehicles than Western manufacturers.

CATL, formally known as Contemporary Amperex Technology Limited, is a supplier to American EV giant Tesla and is thought to hold nearly a 40% market share of the EV battery market, according to figures from SNE Research.

Last month, VW reported that it produced 745,000 battery-electric vehicles in the fourth quarter of 2024, down 3.4% on the previous year, though BEV deliveries in China were up 8%, compared with a 30% decline in the US market.

Volkswagen shares were up 1.2% at €102.50 by 1154 in Frankfurt.

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