Volkswagen on said Friday it had pulled out of Israeli joint venture Dead Sea Magnesium.

The carmaker assigned its 35% share to the majority owner Israel Chemicals ICL, and agreed to pay $30m to Dead Sea Magnesium, Financial Times Deutschland reported.

Magnesium is considered one of the future's raw materials for the auto industry, particularly for composites. However, its significance has deteriorated and currently carbon fibre raw materials are seen as more adequate by the sector, the paper noted.

After VW decided to pull out of the business last year ICL threatened legal action if VW did not meet its financial obligations. ICL accused VW of retreating without notice or explanation from their joint business and sought $80m, FTD added.