Separately, Vulcan said it had received a positive result for its preliminary environmental impact assessment application in Germany.

Leader said that continued use of sanctions against Russia could lead to catastrophic price rises on energy markets, hitting households across Europe with much higher prices for energy.

The deal would cement its position as one of London’s largest commodities dealers.

The Salzgitter venture is one of six battery plants VW has planned for Europe.

The carmaker broke ground on a new cell factory in Salzgitter, Germany, one of five such facilities in Europe under its PowerCo unit.

Hedge-fund managers recently slashed bets on higher commodity prices to the lowest in almost two years.

Fears of a recession are currently generating a much broader investor exodus from the commodity sector, writes Andy Home.