Eye on Lithium: Volkswagen spins-out new battery business and breaks ground at first battery plant in Germany
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The world’s second largest car company, Volkswagen, broke ground at its first battery cell factory in Salzgitter, Germany on Thursday as it launched its new battery business – PowerCo, which will expand across Europe and into North America.
As part of its plan to produce its own batteries and increase vertical integration to help lower costs, Volkswagen said it would invest more than €20 billion, together with partners, by 2030 into the battery supply chain.
“#NEWAUTO creates new jobs. Our first own battery factory in Salzgitter will create 5000 jobs for the region. In Europe, there will be 20.000″, our CEO @Herbert_Diess said today at the groundbreaking of #SalzGiga. pic.twitter.com/4Ygm4daId5
— Volkswagen Group (@VWGroup) July 7, 2022
This is the first of six battery factories the company plans to build across Europe, with its second cell factory earmarked in Valencia, Spain. The four other European factory locations have not yet been announced.
The company plans to start production at the ‘SalzGiga’ cell factory in 2025 – apparently a nod to rival Tesla’s ‘Gigafactory’ which recently opened near Berlin, according to Reuters.
PowerCo will manage Volkswagen Group’s international factory operations, develop cell technology, vertically integrate the value chain, and supply the factories with machinery and equipment.
The Salzgitter plant alone is expected to supply about 500,000 EVs but in total, the new factories planned for Europe could supply roughly 3 million EVs.
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A good day for lithium bugs – 79 companies finished in the green, 41 flat lined and only 10 in the red.
Results from phase-three rock sampling at the South-Eastern Project area at the Barrow Creek Lithium Project has identified three anomalous lithium bearing pegmatite zones.
The program tested exposed pegmatites within 69 rock samples collected over a 6.2km strike length with a zone of outcropping and sub-cropping pegmatites mapped and sampled along a 5km corridor.
AS2 says results indicated a correlation between lithium and several other indicator minerals such as tin, tantalum, niobium, silver, molybdenum and antimony.
Follow up work is planned for the newly identified anomalism as well as for the unexplored South Central area of the project.
The first completed hole in the latest diamond drilling program which recommenced at the Seymour Lithium Project in June has returned 17.9m spodumene bearing pegmatite from 218m as further assays remain pending.
This intersection is considerably thicker than modelled and potentially increases the mineralised volumes in this targeted strike extension of the North Aubry deposit.
The second hole returned 18.6m spodumene bearing pegmatite from 312m, plus a further 6.41m pegmatite interval 60m above the main zone.
Additional step-out drilling at North Aubry is set to target further northerly strike extension, along with accompanying down-dip extensional opportunities.
EFE was once an iron ore junior but is now all-in on lithium and shares in the company rocketed this morning on news of some ‘outstanding’ lithium assays at the Trigg Hill Project in WA’s East Pilbara.
The company has been conducting field work at the project since March, which has included mapping, rock chip sampling of outcropping pegmatites and soil sampling.
Assay results from the first 124 rock chip samples have confirmed visual observations of highly anomalous levels of lithium as well as caesium, tantalum, and tin confirming the presence of fractionated LCT pegmatites.
Of the samples collected from the large East Curlew pegmatite swarm, at least 80% were from LCT pegmatites.