Volkswagen will not get enough batteries for electric cars from Samsung

Volkswagen will not get enough batteries for electric cars from Samsung

May 30, 2019 0 By autotimesnews

Volkswagen wants to change its plans to buy batteries worth $ 56 billion due to fears that its supply agreement with Samsung SDI may fall apart.

It is reported that Samsung has reached an agreement with VW on the supply of batteries with a capacity of 20 gigawatt-hours, which is enough to power 200 thousand electric vehicles with batteries of 100 kW each. However, everything was not so simple.

In the course of detailed negotiations between the parties, issues related to the cost of production and planning were raised, and it is reported that having come to a standstill, Samsung decided to cut down its obligations to the VW Group four times – up to 5 gigawatt-hours.

Interestingly, Samsung refused to comment on the situation, while Volkswagen said that “Samsung continues to be the supplier of rechargeable batteries for Europe.” In general, VW does not hide the fact that the concern needs to conclude new contracts worth billions of dollars, while the German manufacturer is taking steps to reduce its dependence on Asian suppliers in the future.

Now VW Group is exploring the possibility of creating its own factory for the production of batteries together with the Korean company SK Innovation. The concern spends 30 billion euros to promote its electric vehicles, and therefore it is extremely important for it to create a stable supply chain of battery units.