Chinese battery manufacturer CATL has signed a strategic cooperation Memorandum of Understanding (MoU) with Volkswagen to advance collaboration in lithium battery research and development for new energy vehicles (NEVs), as well as new materials and parts development, the company announced.
The partnership aims to create advanced and cost-efficient battery solutions, CATL said in a statement. “The two companies will jointly develop technologically advanced and cost-competitive battery concepts and products,” the company noted.
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The agreement also paves the way for further cooperation in battery recycling, battery swapping, vehicle-to-grid (V2G) technology, carbon emission reduction, and raw material supply transparency, CATL said.
Volkswagen, in a separate statement, confirmed that Volkswagen China, SAIC Volkswagen, FAW Volkswagen, and Volkswagen Anhui have entered into the MoU with CATL to deepen their long-term partnership. The German automaker said the collaboration would help strengthen its battery strategy and enable it to offer cost-effective, high-quality NEV products to Chinese consumers.
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CATL, the world’s largest battery supplier, held a 37.9% share of the global power battery market in 2024, according to South Korean market research firm SNE Research. Volkswagen, one of the world’s largest automakers, delivered 9.03 million vehicles in 2024, down 2.3% from the previous year. Its battery electric vehicle (BEV) deliveries reached 744,800 units globally, a 3.4% decline year-on-year.
Volkswagen’s China sales totaled 2.928 million vehicles in 2024, a 10% drop from the previous year.
See also: CATL Leads Global EV Battery Market with 37.9% Share in 2024, Followed by BYD at 17.2%
The two companies have previously worked together, with CATL receiving certification from Volkswagen’s cell testing laboratory in June 2021, becoming the first power battery maker to earn such approval. Volkswagen also sources batteries from Gotion High-Tech, in which it holds the largest shareholder position.