Volkswagen to take Tesla route in EV industry. Details here

Volkswagen aims to become the top player in the global EV industry by introducing a range of electric vehicles to the market and through the supply chain route. The German car brand reportedly plans to become a global EV battery supplier and also plans to invest in mining, claims a report by Reuters. Interestingly, this strategy is very similar to Tesla, the current global electric car market leader.

The report claims that the largest automotive group in Europe aims to sell batteries to automakers such as Ford as part of its partnership and supply other brands in the future. Volkswagen Group's new CEO Oliver Blue said just last week that the automaker's EV partnership with Ford is intensifying, which is in contradiction with Ford's statement that it doesn't want to rely on Volkswagen over the long term.

Batteries are the most expensive component of any EV. In fact, batteries account for nearly 50 per cent of an EV's total price. On the other hand, with the rise of demand for electric vehicles is continuously pushing the need for batteries. As more carmakers switch to EVs, economies of scale are expected to help bring down battery costs.

Keeping a focus on this, more and more companies are showing keen interest in mining and refining materials that are required for EV batteries. Previously, Tesla disclosed a similar plan. Tesla CEO Elon Musk has been making this point clear for a time, and now Tesla is getting into mining, and now Volkswagen is also showing its intent to follow the same route.

Volkswagen's PowerCo battery unit is reportedly planning to grow exponentially and supply EV batteries globally in the future. The goal is for the unit to satisfy half of Volkswagen's battery needs while selling the rest to competing global brands, including Ford.