Volkswagen is intensifying their electrification efforts and have agreed a biweekly meeting with LG Chem. Thomas Ulbrich, VW’s man for e-mobility called the gathering of executives a “task force” that is to secure their timely supply of batteries for VW.
And batteries Volkswagen will need indeed and no later than 2019. Volkswagen wants to issue 30 electric cars across all brands by 2025 according to the Roadmap E and LG Chem is to help them with that as they become an official supplier to VW, a deal that had been expected.
The Koreans have set up a cell production facility in Poland for the task but Ulbrich said he needed to make sure, they were is in line with the carmakers goals. “There are risks in third- and fourth-tier areas, especially in these new technologies. This is the reason why we created this task force with LG Chem,” said Thomas Ulbrich according to Autonews.
It should be said that LG Chem also works with carmakers General Motors, Volvo, Renault, as well as South Korea’s Hyundai and Kia, so they are likely to bring some experience to the battery task force table.
LG Chem is not VW’s only partner reportedly. They will also work with CATL and overall, Volkswagen set 20 billion euros aside for battery supply deals.
It has not been disclosed how much the deal is worth for LG Chem. On the wire, LG Chem said the number and prices of the batteries to be supplied are fluid due to orders needing to be placed and market conditions. Volkswagen though is gearing for a large market with their latest announcement of an electric car costing less than 25,000 euros.