By Cecilia Butini

Volkswagen AG said Monday that its Chinese subsidiary Volkswagen Group China has signed agreements with two local companies to set up joint ventures focused on the raw-material supply chain for electric-vehicle batteries.

The German car maker said that the agreements are with Huayou Cobalt and Tsingshan Group, and that they will focus on the production of nickel and cobalt as raw materials. The two joint ventures will be set up in China and in Indonesia, Volkswagen said.

According to the company, the projects are set out to improve cost efficiency and secure a sustainable supply chain of battery raw materials, targeting Volkswagen's aim to reduce costs by 30% to 50% on each battery.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

March 21, 2022 03:23 ET (07:23 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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