News: Volkswagen to switch EV battery type, leaving supply deals in doubt: sources.
SEOUL (Reuters) – Volkswagen plans to phase out the type of batteries used in its electric vehicles, three sources aware of the matter announced on Monday, and leaves its supply agreements with LG Energy Solution and SK Innovation in doubt.
The automaker’s plan comes at a time when two major South Korean battery manufacturers that make the current pouch batteries for Volkswagen, LG Energy Solution and SK Innovation, are embroiled in a lawsuit in the US over allegations of trade secret misappropriation related to EV battery technology.
Volkswagen plans to use the prismatic battery type in its electric cars and increasingly turn to supplies from China’s contemporary Amperex Technology Co Ltd (CATL), South Korea’s Money Today Online News site reported earlier Monday, citing unnamed sources from the South Korean battery industry.
Volkswagen plans to announce its battery procurement plans on Monday at Power Day.
LG Energy Solution and SK Innovation have made pouch batteries for Volkswagen, while CATL and Samsung SDI have supplied these with prismatic batteries.
Volkswagen declined to comment. LG Energy Solution, a unit of LG Chem, said it did not comment on market speculation, while SK Innovation refused to comment.
Reporting by Heekyong Yang in Seoul; Additional reporting by Christoph Steitz in Frankfurt; Writing from Joyce Lee; Arrangement by Louise Heavens
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