That's the question investors are asking after the carmaker announced new plans to invest in mines. Specifically, they are talking about PowerCo, a company that is part of Volkswagen and aims to become a global supplier of batteries, not just produce for Volkswagen's own needs.

The reason for such an investment is clear: the car company wants to reduce its battery production costs and, at the same time, have the mineral resources needed to produce them. In the long term, the company plans to produce enough cells to cover half of its global battery needs, with the majority of production capacity located in Europe and North America.

Of the locations where production will take place, the company revealed only that the first mine could be in Canada. Other locations are not yet known. Producing or buying batteries at a reasonable price is key for EV companies, as the price will drop in the future due to high competition and companies like Tesla will struggle to stay competitive. [1]


[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.