Volkswagen has long-term contracts with a number of battery suppliers, as the company launches its massive push in electric cars, but finding those vendors needs a little extra convincing in terms of the potential for making batteries for its EVs. 19659002] VW has identified a need to create joint ventures and offer financial help to its battery suppliers as it moves forward. A s Volkswagen board member Stefan Sommer told Reuters
"Not all vendors are convinced that electric mobility comes on such a large scale. You need to spend more time convincing them to invest in the automotive industry."
While the car manufacturer announced a few weeks ago that has secured the necessary contracts for the first years of the production ramp up, it has not been smooth to sail with all its partners.
Supplier LG Chem threatened to cut the battery supply to VW over its proposed gigafactory plans with another supplier, SK Innovation. LG Chem later sued SK Innovation over the alleged theft of battery secrets.
VW has also had problems with supplier Samsung, who apparently cannot supply most of the promised offer. As Sommer said to Reuters,
"These manufacturers have to prioritize between creating a new smartphone or building a new battery factory. So even the battery manufacturers are asking: will the production volumes happen quickly?"
Last year, VW announced a venture with Northvolt for a common gigafactory – the car manufacturer also invests in Northvolt's own gigafactory.
Reuters article has some other interesting quotes from Sommer about the challenges of VW that ensure the necessary battery solution. From last year, the company awarded $ 48 billion in battery contracts. He said:
"When it comes to common components, vendors have the opportunity to sell to other car manufacturers if VW buys less. But with electromobility we all know: If it doesn't work for VW, it won't work for others . "
He also said:" We have not been able to build as many cars as we wanted. Our supplier does not deliver the numbers we need. "But it is unclear who he referred to in this The case – whether it was Samsung or others.
Volkswagen will also announce a deal with Ford one day now on electric and self-driving cars. The deal was considered almost guaranteed in mid-June, with a new report from Reuters claiming that a clear agreement has been reached.
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