Volkswagen’s battery subsidiary PowerCo has signed a multi-year supply agreement with U.S. specialty chemicals maker Cabot, under which Cabot will provide conductive carbon materials and dispersions for PowerCo’s battery electrodes, the companies said.
The deal will see Cabot’s conductive additives used to improve the conductivity and efficiency of batteries produced by PowerCo, which is building a European battery manufacturing footprint to support Volkswagen Group’s electric vehicle strategy. Financial terms, order volumes and the duration of the agreement were not disclosed.
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Cabot described the agreement as a “significant milestone” in its expansion into the battery materials market, signalling growing demand for advanced conductive solutions as automakers push to improve battery performance and scalability. The company did not specify which vehicle models would ultimately use batteries containing its materials, referring instead to next-generation electric vehicles.
“This agreement positions us as one of the leading conductive materials suppliers in the European EV battery market,” said Jeff Zhu, executive vice president of Cabot. “Furthermore, it reflects the strength of our technology and our ability to scale production to meet growing global demand.”
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PowerCo’s selection of Cabot is likely tied to the U.S. firm’s growing footprint in Europe. Cabot has operated a battery technology centre in Münster, Germany, since 2023, focusing on collaboration with customers across Europe, the Middle East and Africa. The company has also said it already maintains production capacity for conductive carbon additives in Europe.
Cabot’s conductive products are part of a broader portfolio used to enhance battery performance across multiple applications, including automotive, stationary energy storage and consumer electronics. The company joined the European Battery Alliance in 2023 as part of its effort to deepen ties with regional battery and EV manufacturers.