New Energy Vehicles

08 Jan 2022

Volkswagen Discussing Partnership with Korean EV Battery Makers

08 Jan 2022  by   

Volkswagen is discussing prismatic battery supply contracts with South Korean electric vehicle battery manufacturers. At present, Samsung SDI is the only South Korean electric vehicle battery manufacturer that produces prismatic batteries, SK On has developed prismatic batteries since last year, and LG Energy Solution is capable of producing prismatic batteries. Volkswagen is discussing pouch battery supply with SK On and LG Energy Solution, too.

According to experts, Volkswagen is doing so for supply source diversification with its partnership with Northvolt faltering.

Volkswagen announced in March last year that 80 percent of its electric vehicles would come with prismatic batteries in 2030 and it would build six battery plants in Europe with Northvolt by 2030. Volkswagen acquired 20 percent of Northvolt in 2019 and the latter is scheduled to supply the former with US$14 billion of electric vehicle batteries for 10 years.

“Northvolt carried out its first lithium-ion battery cell assembly for the contract late last year,” said an industry source, adding, “It seems that the prototype prismatic battery failed to satisfy Volkswagen and the automaker is seeking alternatives.”

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