Automotive Giants Volkswagen and Stellantis Ordered Thousands of Tons of a Crucial Material for the Development of Next-Generation Batteries for Their Vehicles.
Volkswagen and Stellantis, two of the largest global automakers, have placed orders for thousands of tons of essential materials for the production of next-generation batteries.
These strategic acquisitions aim to secure the necessary supply for their electric vehicles, highlighting both companies’ commitment to a transition to sustainable mobility and leadership in the electrification of the automotive industry.
Lithium batteries have evolved impressively in recent years, but there is still much progress to be made. The efficiency, range, and charging times of batteries need to continue improving to meet the growing demands of electric mobility.
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In this context, in addition to focusing on lithium, one material is emerging as a key piece for innovation: graphite.
The Growing Demand for Graphite in the Electric Mobility Sector
Graphite is an excellent conductor of electricity and has remarkable thermal stability, characteristics that make it indispensable for the development of battery anodes. Originally used in lithium batteries, graphite has also increasingly been incorporated into LFP (Lithium Iron Phosphate) batteries as it provides superior yields.
With the increase in electric vehicle production, the demand for graphite spikes, and projections for the coming years indicate that this trend will continue. In 2023, graphite sales increased by 45%, reflecting the growing dependence on this material.
Volkswagen and Stellantis
To ensure the necessary supply for the future, industry giants like Stellantis Group and Volkswagen Group have signed supply contracts for graphite with Novonix, a company specializing in producing more eco-friendly synthetic graphite.
The Stellantis agreement aims to ensure the delivery of up to 115,000 tons of synthetic graphite between 2026 and 2031, with a commitment to a minimum of 86,250 tons. Novonix, which is building a plant in Riverside, USA, expects to produce more than 20,000 tons of synthetic graphite by the end of 2025.
Expansion of Graphite Production in the United States
Volkswagen, in turn, has signed a contract with PowerCo, its battery subsidiary, to ensure at least 32,000 tons of synthetic graphite between 2027 and 2031.
These agreements are just part of the industry’s growing movement to secure the supply of essential materials for battery production. In addition to the Riverside plant, Novonix is building a second facility in the southeastern United States, with an initial capacity to produce 30,000 tons of graphite per year, potentially expanding to 75,000 tons.
Other companies, such as Panasonic, have also entered the race to secure graphite supply, with plans to deliver at least 10,000 tons starting in 2025. LG, although it has entered into a similar pact, has yet to finalize the details of this partnership.
With advancements in graphite production and the ongoing evolution of batteries, the future of lithium-ion batteries promises to be more efficient, faster, and sustainable. Graphite has proven to be not only a vital resource for current batteries, but a central piece for the future of electric mobility.

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