Volkswagen Makes Paradigm Shift Towards Electric Cars

In a bid to align itself with global trends German Volkswagen has deliberately made a shift towards electric cars.

The worlds largest automaker have asked cobalt producers to submit proposals on supplying cobalt for up to 10 years from 2019.

Volkswagen  which decided on the strategic shift to electric vehicles (EVs) after it was involved in the "dieselgate" scandal, plans to invest more than 20 million euros ($24 billion dollars) in zero- emission vehicles by 2030 to challenge pioneer Tesla in creating a mass market.

According to sources VW also plans to produce up to three million EVs per year up to 2025 and wants all the cobalt tender proposals submitted by September.

A cobalt industry source said: "The tender doesn't actually tell you how much cobalt they want. They tell you how many EVs they want to make, you have to work out the cobalt content yourself."

According to Reuters VW would need 150 gigawatt hours of battery capacity annually by 2025 for its electric vehicles.

In a VW statement issued: "The procurement project is one of the largest in the history of the automotive industry, with a total order volume of over 50 billion euros. That will meet the Group's needs for the first wave of e-mobility," VW said.

Demand for cobalt is expected to soar in the coming years due to the electric vehicle revolution as governments and the world cracks down on pollution. VW is under particular pressure as it has been slow to embrace electric cars and self-driving technology until admitting two years ago to cheating on U.S. diesel emissions tests.

The Democratic Republic of Congo (DRC) produces roughly 65 per cent of global cobalt supplies estimated at about 100,000 tonnes this year. Canada, China, Russia, Australia and Zambia are also major sources.

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