Volvo in Advanced Talks on Possible Lithium Mining
Deal could involve taking equity stake or securing long-term supply
BERLIN— Volvo AB VOLV.B +0.66% is in advanced talks with some of the world’s biggest mining companies, including over potential stakes in lithium mining or processing operations, Volvo Car AB VOLCAR.B +1.08% Chief Executive Jim Rowan said, joining an auto-industry-wide race to secure the minerals and metals needed to power electric vehicles.
“Right now, we already have advanced conversations with some of the big miners, as well as the processing factories that process lithium,” Mr. Rowan said, adding that Volvo would decide in the coming months whether to engage in “long-term deals and long-term price negotiations for supply or whether you want to make an equity investment.”
Mr. Rowan said it was too soon to disclose any further details about the talks, but that the company was actively considering which parts of the electric-vehicle supply chain it should move in-house to control costs and secure supply.
The talks to secure the supply of lithium come as Volvo and Swedish battery maker Northvolt AB are building a battery plant in Torslanda, Sweden, where Volvo’s main production site is located, to supply its growing line of electric cars.