2023-03-17 07:55:45 ET
Volkswagen ( OTCPK:VWAGY ) announced slated investments in mines to reduce material costs for its battery production on Friday.
The German automaker said that the investment will be utilized to shore up its own supply chain and sell key materials like lithium, nickel and cobalt to third-party customers. The battery unit PowerCo aims to become a global battery supplier, according to comments made by board chair Thomas Schmall in an interview with Reuters .
Other automakers, including General Motors , have recently prioritized investments in securing supply chains for raw materials like lithium.
Elsewhere, the auto manufacturer’s joint venture with SAIC Motor in China announced it would offer 3.7 billion yuan ($537M) in cash subsidies for vehicle purchases in China. The joint venture is offering thousands in subsidies for each individual purchase through April 30, according to social media posts made by the vehicle group.
Read more on Tesla’s most recent price cuts in the US .
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Volkswagen eyes investments in mines, subsidizes Chinese customers