Volkswagen forms EV battery partnership with 24M Technologies

Automaker Volkswagen has partnered with UK-based battery maker 24M Technologies to manufacture next-generation lithium-ion batteries using 24M's SemiSolid platform for use in VW's electric vehicles, 24M partner FREYR Battery said Dec.8.

Under the strategic partnership and investment agreement, VW will invest an undisclosed amount in 24M and establish a subsidiary that will cooperate with 24M to develop a SemiSolid battery cell production technology for automotive applications.

VW said in a separate statement that the partnership secured it access to innovative dry coating process in battery cell production and the goal of the partnership was to industrialize the 24M technology in the automotive battery area, with the semi-solid process being an improvement over the current dry coating process.

"The target is to generate considerable cost optimization in future battery production, by reducing material usage and eliminating several steps from the conventional production process. For this purpose, a new Volkswagen-owned subsidiary will further develop and upscale the technology for automotive applications based on 24M IPs," the automaker said.

VW said the prospective benefits of using 24M's SemiSolid technology included up to 40% less production area, considerable savings on investment and more efficient product recycling, as well as the reduction of the emissions footprint of battery production.

The automaker said that it aimed to implement the process in large-scale production in the second half of the decade.

24M CEO Naoki Ota said the company's mission was to develop a better, cleaner energy future powered by technology and the partnership with VW would expands the 24M ecosystem.

"Their investment, collaborative development and ability to scale globally will accelerate our manufacturing platform, thereby replacing the conventional manufacturing process and fast-tracking electric vehicle adoption," Ota said in both statements.

VW is planning to build six gigafactories with a total production capacity of 240 GWh in Europe by 203 and the agreement with 24M is one of three partnerships in the battery space announced by VW on Dec. 8.

It also agreed to form a joint venture with battery cathode manufacturer Umicore to increase production capacity of battery precursor and cathode materials in Europe to supply the automaker's battery cell production for its EVs.

In addition, VW signed an initial five-year offtake agreement with Vulcan Energy Resources for a total 34,000-42,000 mt of battery-grade lithium hydroxide starting from 2026 from the Zero Carbon Lithium project in Germany's Upper Rhine Valley.

24M, which is a spin-off from the Massachusetts Institute of Technology, previously partnered with FREYR in 2020, with the latter signing a license agreement for the rights to unlimited production of battery cells based on 24M's current and future technologies.