Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Volkswagen to switch EV battery type, leaving supply deals in doubt: sources

TechnologyMar 15, 2021 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: VW shows electric SUV "ID 4" during a photo workshop 2/2

By Heekyong Yang

SEOUL (Reuters) - Volkswagen (DE:VOWG_p) plans to gradually switch the type of battery used in its electric vehicles, three sources with knowledge of the matter said on Monday, moving away from the technology supplied under current deals with South Korea's LG Energy Solution and SK Innovation.

Volkswagen plans to use the prismatic type of battery, increasingly turning to supplies from China's Contemporary Amperex Technology Co Ltd (CATL), South Korea's Money Today online news site reported earlier on Monday, citing unnamed South Korean battery industry sources.

The German carmaker declined to comment. Volkswagen plans to announce its battery procurement plans at its Power Day event on Monday, Money Today reported.

South Korea's LG Energy Solution and SK Innovation have been manufacturing pouch-type batteries for Volkswagen, while CATL and Samsung (KS:005930) SDI have supplied it with prismatic ones.

LG Energy Solution, a unit of LG Chem, said it does not comment on market speculation, while SK Innovation declined to comment.

"It really depends on how fast Volkswagen manages to switch to prismatic type batteries. Currently, there are not enough prismatic battery supplies, and it would take quite a while for Volkswagen to fully adopt them," sand Han Sang-won, an analyst at Daishin Securities.

"One of the reasons that Volkswagen has chosen to switch could be to enhance electric vehicles' safety, as prismatic batteries are generally considered to have lower energy density than pouch-type batteries, making them relatively safer," Han added.

Among three types of batteries - prismatic, pouch and cylindrical - prismatic batteries had 49% share in the EV battery market in 2020, while pouch-type batteries had 28%, according to industry tracker SNE Research.

The plan comes at a time that LG Energy Solution and SK Innovation are locked in a legal battle in the United States over allegations of misappropriation of trade secrets related to EV battery technology.

Volkswagen to switch EV battery type, leaving supply deals in doubt: sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
John Smith
John Smith Mar 15, 2021 7:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Electric Vehicle (EV) rally is ongoing and has already created remarkable records. go-green momentum, paved the way for a melodramatic 2020 Electric Vehicle (EV) revolution. While a  significant decline was expected in the automotive industry during the pandemic, EVs registered a record-breaking year with the leader, Tesla, delivering 499,550 vehicles in 2020. A record 180,570 vehicles alone were sold in the last quarter of 2020(source:kalkinemedia).Companies working on charging technology and charging stations are set to gain from the EV industry's growth.
Jokers R Us
Jokers R Us Mar 15, 2021 7:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The whole world is selling out to China..smh
Harsha Rao
Harsha Rao Mar 15, 2021 7:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Switch to Chinese manufacturers again?.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email