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Volkswagen Claims It Secured Battery Cell Supply For EV Offensive

MARK KANE From INSIDEEVs| June 25 , 2019

Volkswagen battery cell supply

Volkswagen sends signals that the brand, and broader Volkswagen Group, secured the supply of lithium-ion battery cells for the upcoming first wave of electric cars.

Thomas Ulbrich, Member of the Board of Management of the Volkswagen Brand responsible for E-Mobility, said:

"I can confirm that for the first years of our plan, a sufficient supply of cells has been contractually secured,"

"Adding this was the case until 2023."

It's expected that from 2021, production of BEVs in Zwickau, Germany will be around 330,000 per year. The first model will be Volkswagen ID.3, followed by its derivatives.

By 2025, cell demand could be more than 150 GWh in Europe and 150 GWh in China. The list of suppliers includes:

  • Europe: LG Chem, Samsung SDI and SK Innovation plus a deal with Northvolt

  • China: CATL

  • North America: SK Innovation

An interesting question was about the investment in Northvolt and plans to produce battery cells through a joint venture in Salzgitter, Germany.

Thomas Ulbrich explains that there are no worries about the reaction from battery suppliers:

"They probably hoped to maintain an oligopoly for a very long time. We have the contracts so no one is going to stand there and tell us 'we are not going to supply you any more, help yourselves if you want to build them anyway,' -- that’s not possible."

In May, Bloomberg reported that VW Group decreased its order from Samsung SDI from over 20 GWh annually, to just 5 GWh.

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