Moreover, the group has signed a memorandum of understanding with the Canadian firm, agreeing to offtake 100,000 tonnes of spodumene concentrate per year over a ten-year term.

As manufacturers increasingly move towards producing electric, “software-defined” vehicles, Volkswagen CEO, Oliver Blume said that aesthetics will replace “traditional unique selling propositions” (i.e., technical design) as the key differentiator between brands.

From now on, Volkswagen will specify to its Tier 1 suppliers which semiconductors and other parts it would prefer in its electronic components.

Traton has signed a framework agreement with its parent company, Volkswagen, which outlines the terms for selling and transferring the rights to provide financial services for MAN and Volkswagen Truck & Bus to Traton Financial Services.

The building will be constructed and expanded in phases up to 2030, representing a planned investment of up to EUR4.8bn, or CAD7bn.

Its subsidiary, PowerCo, will build gigafactories for EV battery cells in Sagunto, near Valencia, Spain, and in St Thomas, Ontario, Canada, to open in 2026 and 2027 respectively.

Sales of vehicles made by Traton's brands increased by 12.6% from 271,200 units to 305,500 in 2022.

By 2030, PowerCo hopes to receive up to 40-GWh worth of critical battery materials from Umicore – enough to make batteries to supply 550,000 EVs annually. 

In October, Volkswagen published an updated ‘Green Finance Framework’, an outline for issuing green bonds which incorporates up-to-date EU taxonomy for sustainable activities.

Oliver Blume is appointed Chairman and CEO of the Group; the number of members on the board is reduced from twelve to nine.

Both German automotive corporations, which have both committed to ramping up production of electric vehicles before the end of the decade, are keen to establish secure and sustainable supply chains for their EV manufacturing operations.

The automotive corporation has set up a new company called PowerCo which will be responsible for production at the facility - set to begin in 2025 - and for global marketing of battery products for the group.