Volkswagen To Partner With Panasonic, LG Chem For EV Battery Production?

JUL 21 2016 BY MARK KANE 16

LG Chem lithium-ion battery cell

LG Chem lithium-ion battery cell

A recent report suggests that Volkswagen will partner with top lithium-ion battery manufacturers to establish its own battery gigafactory….which, sounds like a familiar a plan to us (and probably to Tesla as well).

According to Bloomberg, Panasonic and LG Chem, both already suppliers to the Volkswagen Group, were mentioned as potential partners for the joint venture.

By forming a JV, Volkswagen could solve two problems at once – ensuring its lithium-ion cell technology sis relevant, and gaining volume cell manufacturing experience.

Hinted costs of a single production facility could be up to €2 billion.

A decision on the investments (and a a potential partner) to be made by the end of this year.

“Volkswagen confirmed it’s examining options and considering multiple locations to make batteries for a sales volume of between 2 million and 3 million purely electric-powered cars by 2025, declining to comment on details of the potential sites.”

““Battery technology is a key competence for electric mobility, which will see its breakthrough toward a mass market in coming years,” Volkswagen said. Sales of as many as 3 million electric cars by 2025 imply “the necessity to look intensively into this issue.””

source: Bloomberg

Categories: Volkswagen

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16 Comments on "Volkswagen To Partner With Panasonic, LG Chem For EV Battery Production?"

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…and then there were four?

A short list of EV manufacturers investing in their own battery factories, and thus likely to survive the evolving EV revolution:

…and now Volkswagen?

I certainly hope this becomes true.

Go Volkswagen!

I wish they all make one standard type of batteries. Inter operability. Where a battery from say Tesla will work on VW.

Standardization is only appropriate for mature technologies. What is appropriate in a fast-evolving technology field such as battery tech, is competition. Thank goodness fierce competition between battery makers is driving rapid advancements and a rapid drop in prices!

Standardization? Nope. Not for decades. Heck, even with a tech as mature as the internal combustion engine, we still don’t have much standardization between cars.

Agreed. Standardization is needed but I think it’s better suited for when battery prices start stagnating. So maybe in 10 years.

Should I play the Funeral March for VW?

I mean, just how many global lawsuits can they withstand, and remain viable? And as the sordid details of how far back the deception of the scandal goes, and who knew what when, the more likely the money they need to implement any change to BEV technology, becomes less certain.

But they can spin EVs into separate company and source cash on the market separately. In fact that would be very good safeline, where ICE portion of the company have trouble due to deception, while EVs department rides EVs wave 😉

With VW newfound dedication to EVs, and their massive budget, I’d say we will see most other carmakers die before VWs time has come.

15 billion is a lot, but if you have almost 40 billion in cash, or cash equivalent, lying around, the problem should be manageable.

Make enough EVs to offset the diesel pollution over the years.

Impressive as 150 GWh is, I find it a low ball number for 3 million cars, in 2025. It’s just 50 kWh per car on average. Isn’t 60 kWh the new minimum at least from 2018??

There are most likely PHEVs and BEVx’s included in those 3 million.

50 kWh per vehicle on average if only BEVs is definitely too low. There will most likely be a few 120-150 kWh models available then too.

Can’t wait until 100Kwh is the bare minimum for all $20,000+ cars. I think it will happen by 2025.

I guess they calculated with 2-3 million. So 50-75kWh per car. If you include PHEVs, maybe half of them PHEVs with 20kWh, then you get 60kWh-130kWh.

And if you keep in mind that VW, just the brand, “only” sells 6 million cars, 3 million is certainly a big share.

I think 30 to 72 will be the sweet spot as that gives you a small compact car at a low entry option at a low price up to a decent highway car. IMO 90 to 110kWh will only be needed for trucks and long distance cruising. Over the next few years as powerful chargers appear in much larger numbers the need to lug giant batteries around will feel silly.

People work the numbers like they trust this company?

The story about backing off diesels, from VWOA official I think, would make a good IEV article, as its inverse implies greater PHEV sales. This is the diesel crowd’s leading question, “will they come back”. Wards has shown off the new 1.4ltr. So, definitely in some parts of the world, and fitting SCR (like on the Cruze/Colorado) is not out of the $$ question (hundreds).

VW just hates changing its “tune” for one country. That’s perhaps the big change going forward. They either keep 4-cyl diesel, or go more all-in with compliance PHEV (perhaps US only, given our 2% ZEV CARB state ratchets). You’d be hopeless to wait for REx, EREV, or a compelling VW passenger BEV. My view. I’d be curious to know if premium BEV credits from Porsche/Audi could “travel” to VW’s needs?

i wish VW and EPA agreed to the plan elon musk signed on it. instead of forcing them to pay out fines, we could have forced them to build battery factories indirectly helping them to move forward rather than die a long painful death.

You forget another important player. Samsung SD provides suitable battery cells and modules as well.