London, 14 March (Argus) — German carmaker Volkswagen plans to build 16 new electric vehicle (EV) production sites around the world by the end of 2022 and invest €90bn ($111bn) by 2023.

The company currently produces electric vehicles at three locations, while nine more plants are due to be commissioned in two years.

The Roadmap E plan aimed at expanding the company's EV fleet will result in the production of up to 3mn electric vehicles annually by 2025, comprising of 80 new electric models, chief executive Thomas Mueller said.

This year, nine new electric vehicles including three pure electric vehicles will be added to the group's portfolio of eight plug-in and hybrid cars.

The company has awarded battery production contracts worth a total of €20bn to manufacturers in Europe and China, while North American supplier contracts are awaiting confirmation.

This would indicate that most supplies of core battery raw materials — including cobalt and lithium — have been secured via third-party battery producers.

Raw material supply is likely to remain a concern, with leading cathode manufacturers [seeking to phase out the use of cobalt](

https://direct.argusmedia.com/newsandanalysis/article/1616082). The company did not provide full details of the new contracts.

Most automotive companies do not produce EV batteries, but some manufacturers including Germany's Daimler are developing production amid concerns of tight supply and rising prices for cobalt and lithium.

This analysis was published in Argus Metals International.