Adem Jones || Issue 15 || March 5, 2025
Volkswagen and Contemporary Amperex Technology Co., Limited (CATL), the world’s largest EV battery manufacturer, have announced a partnership that is set to make major changes in the EV industry. The German automaker is strengthening its relationship with China’s battery giant to develop advanced lithium batteries for Volkswagen’s electric vehicles in China. This move is a testament to the growing relationship between Western automakers and Chinese technology firms. As the global race for dominance in the EV market heats up, companies are working hard to secure supply chains, stay competitive, and move through an industry that’s rapidly changing. CATL is bringing its cutting-edge technology and manufacturing knowledge, while Volkswagen is contributing its automotive expertise and success in the auto market. The deal goes beyond just making batteries, it includes battery recycling initiatives and vehicle-to-grid (V2G) technology, which allows EVs to send electricity back to the grid, helping both companies step up their sustainability efforts. This move is very strategic for both companies. The European battery industry has been struggling, with companies like Northvolt facing financial troubles. Northvolt, which was once seen as Europe’s answer to better performing Asian battery companies, recently filed for Chapter 11 bankruptcy and is scrambling to secure funding. Volkswagen, which owns a 21% stake in Northvolt, has little interest in throwing more money into a sinking ship, leaving the automaker looking elsewhere for stable and cost-effective battery solutions. With Europe’s battery market faltering, China’s CATL remains the logical choice. This collaboration also brings attention to China’s increasing importance in the EV battery space. Chinese manufacturers, led by CATL, accounted for two thirds of the global EV battery market in the first half of 2024. Despite U.S. and EU efforts to impose higher tariffs and reduce reliance on Chinese tech, CATL continues to outpace competitors thanks to its technological advancements, government support, and cost efficiency. Volkswagen’s decision to work with CATL shows that even large scale companies can’t deny CATL’s impact. Despite geopolitical tensions, business is business, and China remains the epicenter of battery innovation. The Volkswagen-CATL deal is a glimpse into the future of the auto industry, where legacy automakers are forced to collaborate with rising tech powerhouses to survive. The days of traditional automakers controlling every aspect of vehicle production are fading fast, and the companies that adapt will be the ones that thrive. As the world moves further into an electrically powered future, strategic partnerships like this one will define who leads and who gets left behind.
Volkswagen isn’t just making a business deal with CATL, it’s making a bet on the future of mobility, and that future, whether the West likes it or not, is increasingly being shaped in China.
The Hudsonian 