China battery maker Wanxinag Group has secured a $1.4 billion deal to supply German vehicle OEM Volkswagen Group (VW) with lithium-ion batteries.
The deal, through the China firm’s subsidary Wanxiang A123 (Wanxiang bought battery maker A123 in 2012), gives VW a second China lithium-ion cell supplier alongside Contempoary Aperex Technology (CATL).
Although it’s worth noting that Volkswagen took a 20% stake in Chinese Tier 2 electric vehicle battery maker Guoxuan High-tech in May.
Shen Yanqi, from Wolkswagen Group China, told BEST: “China is the world’s largest NEV market. Following CATL, Wanxiang A123 will be the second battery supplier for Volkswagen Group China in the country.
“The Group is pursuing a multi-supplier strategy in China, developing further partnerships in the field of battery technology to meet future demand as local NEV production ramps up.
“We welcome opportunities to cooperate with new suppliers. The Group’s agreement with Wanxiang A123 will not affect any other ongoing contracts related to battery supply.”