Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Suppliers Email this story   Print this story
 
VW to reshuffle $56 billion battery push with Samsung deal at risk, report says
Bloomberg | 2019/5/28

Volkswagen Group is reworking its battery-purchasing plan worth about 50 billion euros ($56 billion) over concerns a supply deal with Samsung SDI might unravel, according to people familiar with the matter.

Samsung initially agreed to deliver batteries for just over 20 gigawatt hours, enough to power 200,000 vehicles with 100 kilowatt hour packs, before different views on production volume and schedule emerged during detailed negotiations, said the people, who asked not to be identified as the talks are confidential. The impasse cut pledged supplies to less than 5 gigawatt hours, they said.

¡°Samsung continues to be our battery cell supplier for Europe,¡± VW said in an emailed statement. Samsung declined to comment.

Access to vast amounts of batteries to power a growing number of EVs has emerged as a new battleground for global automakers amid capacity constraints, supply bottlenecks and limited access to raw materials. Producing batteries safe to use in EVs is more complex compared to technology that¡¯s used in consumer electronic devices such as smartphones.

VW is spending 30 billion euros on the industry¡¯s biggest push into EVs with a new range of purely battery-powered cars to challenge electric-car leader Tesla Inc. The German manufacturer¡¯s electric ID.3 hatchback will start rolling off assembly lines later this year.

Tesla, beset by concerns over demand and its ability to make a profit, last month blamed its battery supplier, Panasonic Corp., for tepid output of the affordable Model 3.

Earlier this month, VW outlined a project to build a domestic battery-cell factory in Germany together with Swedish startup Northvolt for almost 1 billion euros with capacity of 10 gigawatt hours. VW plans to make a final decision later this year.

VW¡¯s EV push over the next ten years translates into battery demand of more than 300 gigawatt hours in Europe and Asia alone, outstripping current market capacities.

VW has picked LG Chem, Samsung and SK Innovation Co. as battery suppliers for Europe along with Contemporary Amperex Technology Co. for China. It later added SK Innovation as partner for North America as well, starting in 2022.

The huge investments required to ramp up battery-production capacity have stoked intense rivalry, highlighted by a lawsuit LG Chem filed in the U.S. against SK Innovation over allegedly stolen secrets.

Related Stories
  • Geely, LG Chem to form $188 million EV battery joint venture
  •     --Published:2019/14/6
     
  • VW to introduce self-driving cars with JAC in Hefei
  •     --Published:2019/31/5
     
  • VW Group gains share despite extended sales dip
  •     --Published:2019/21/5
     
  • Volkswagen teams with China's NIU to make e-scooters, report says
  •     --Published:2019/7/5
     
  • U.S. has battery problem in race for EV supremacy
  •     --Published:2019/3/5
     
  • German automakers' strategies differ on changing China JV stakes
  •     --Published:2019/3/5
     
  • Battery maker CATL's profit soars behind EV boom
  •     --Published:2019/30/4
     
  • Volkswagen plans EV plant with JAC in Hefei
  •     --Published:2019/26/4
     
  • VW Group sales continue to decline on weak VW, Skoda results
  •     --Published:2019/16/4
     
  • VW plans Tesla-fighting electric crossover
  •     --Published:2019/16/4
     
  • Automotive Energy Supply targets EV makers with first China battery plant
  •     --Published:2019/16/4
     
  • VW: China to become global software development hub for AV tech
  •     --Published:2019/16/4
     
  • VW eyes buying big stake in China partner JAC, report says
  •     --Published:2019/12/4
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ