Leadership & Strategy
Volkswagen to source EV batteries from LG Chem
May 20, 2020
Seoul-based LG Chem, Korea’s largest chemical company, will supply batteries for Volkswagen’s electric vehicles from late 2019, according to Reuters
VW is set to debut its new range of EVs in 2020, with the firm aiming to sell 150,000 units in the range's debut year.
Thomas Ulbrich, member of VW’s brand board of management, said, “As early as 2020 we intend to sell 150,000 e-cars, of which 100,000 will be the ID. and ID. SUV.”
“Speeding up the shift to e-mobility will help us to meet the extremely ambitious CO2 targets that have been set in Europe, China and the USA.”
The new range, known as the ID. family, will be based on modular electric drive (MED) toolkit technology which has been designed specifically for EVs.
- Tencent and KKR to buy minority stake in Philippines’ Voyager Innovations
- The October edition of Business Chief Asia Pacific is now live!
- Exxon Mobil considering further investment in Singapore refinery, the firm’s largest
According to Automotive World, VW is investing US$7bn in e-mobility. $1.5bn of this funding will be focused on the firm’s battery production plant in Braunschweig and component factories in Salzgitter and Kassel.
It added that Volkswagen Components business unit has developed its own battery system for Volkswagen ID., suggesting that LG Chem will be developing batteries with specific patented VW specifications.
Reuters said that no details regarding the value of the deal between VW and LG Chem have been disclosed besides the fact that “the volume and the prices of the batteries will be subject to change depending on Volkswagen’s orders and market conditions.”
Auto News Europe said that VW and LG Chem have set up a “biweekly task force” centred on ensuring security of VW’s battery supply chain, as LG Chem does not have experience of meeting the demanding requirements of automotive manufacturing.
- Angela Baker, Qualcomm’s CSO shares her hopes for Davos 2023Sustainability
- 10 most sustainable sites – furniture factory to solar farmSustainability
- The history of the G20 summit – everything you need to knowLeadership & Strategy
- How tech innovator HiiROC is cleaning up future of energySustainability