Volkswagen’s presumed plans to enter the mass production of battery cells for electric cars with the support of its Korean partner SK Innovation are apparently being torpedoed by the other cell suppliers who have been active for Volkswagen to date.
According to the German Manager Magazin, a project worth billions was to be approved as early as December, entailing the construction of up to three major battery cell factories in Germany. Volkswagen CEO Herbert Diess is said to have been prepared to make multi-billion investments to secure the company’s enormous electrification program.
But according to the report, there is resistance from current cell suppliers. LG Chem, in particular, is resisting and In particular, LG Chem is against it and threatens “to stop supplying if VW enters production with SK Innovation,” and this possibly immediately. The business magazine refers to managers who are familiar with the negotiations.
One thing is clear: it is impossible for Volkswagen to compensate for a delivery stop. Almost the entire battery cell requirements of the Wolfsburg company will be covered in the coming years by manufacturers from Korea. Often it is the longer lever that the battery cell companies are working on that is the main issue. In this case, they are using it demonstratively. According to Manager Magazin, negotiations are now being taken up again, this time including the involvement of the protesters like LG Chem as well as the rivalling SK Innovation.