Volkswagen China says will form ventures with Tsingshan Group, page-8

I think Tsingshan is just fine !!

Volkswagen Group China has unveiled a plan to set up two joint ventures with Huayou Cobalt and Tsingshan Group to secure raw materials required for manufacturing batteries for electric vehicles.The two joint ventures are aimed at covering upstream and downstream of the cathode supply chain to support Volkswagen's ambition of new energy vehicles growth in the world's largest automobile market, according to a press release Volkswagen posted on its website Monday.Volkswagen signed a memorandum of understanding with Huayou and Tsingshan to form a joint venture in Indonesia, where more than 10 percent of the world's laterite nickel ore reserves are located to produce battery raw materials.At the final expansion stage, the total production capacity is equal to the supply of 160 GWh battery's demand for nickel and cobalt raw materials. Huayou said in a separate filing to Shanghai Stock Exchange on Monday that the joint venture will have an annual output of about 120,000 tonnes of nickel and 15,000 tons of cobalt.Huayou, founded in 2002, specializes in new energy Li0ion battery materials and new cobalt materials.Volkswagen also plans to establish a joint venture with Huayou in south China's Guangxi Zhuang Autonomous Region to refine nickel and cobalt sulfates, precursors, and cathode material production."The two partnerships target to contribute to the Group's long-term target of a 30-50 percent cost reduction on each battery," said Volkswagen in the statement.