Skip to main content

VW may shift $56 billion in battery spending from Samsung over concerns

Volksawgen ID R 5-8
Image used with permission by copyright holder

Volkswagen is preparing to ramp up production of electric cars, and that means it will need a lot of batteries. But the German automaker may be in the midst of reshuffling its battery suppliers, according to a new report. VW is preparing to redistribute 50 billion euros ($56 billion) in funding earmarked for batteries over concerns that a supply deal with Samsung might unravel, Automotive News reports, citing anonymous sources familiar with the matter.

Samsung initially agreed to supply 20 gigawatt hours worth of batteries, enough to power 200,000 cars with 100-kilowatt-hour battery packs (the kind that gives a Tesla Model S or Model X over 300 miles of range), according to Automotive News. But Samsung and VW began to disagree on production volumes on scheduling during negotiations for the deal, and the amount of batteries was eventually cut to less than 5 GWh.

“Samsung continues to be our battery cell supplier for Europe,” VW told Automotive News in an emailed statement. Samsung declined to comment to the publication.

Volkswagen needs a large amount of batteries to power a growing lineup of electric cars. The German automaker is launching a new line of battery-powered models, starting with the ID.3 hatchback in Europe, and hopes to be building 1 million a year by 2025. VW-owned Audi and Porsche are launching their own electric cars as well. By 2028, Volkswagen expects to have 70 all-electric models on sale across multiple brands, although not all of them will be available in the United States. One model already confirmed for the U.S. is a production version of the I.D. Buzz concept, a modern reimagining of the classic VW Microbus.

Other automakers have announced similarly ambitious plans. In addition to all-electric cars, automakers are also planning to sell more hybrid cars, which use the same lithium-ion batteries, albeit in smaller amounts. Automakers feel this is necessary to meet stricter emissions standards, but it will likely lead to fierce competition over a finite supply of batteries.

Lithium-ion batteries are made only by a handful of companies, and bottlenecks in production and the supply of raw materials mean volumes can’t be instantly cranked up to meet automakers’ demands. Even with its massive Nevada “Gigafactory,” Tesla struggled to ramp up production of its mass-market Model 3, and has even taken to blaming battery supplier Panasonic for the delays.

Volkswagen picked LG Chem, Samsung, and SK Innovation as its battery suppliers for Europe, along with Contemporary Amperex Technology Limited (CATL) for China. It later added SK Innovation as a supplier for North America beginning in 2022, but the company is now being sued in the U.S. by LG Chem over alleged theft of trade secrets. SK Innovation denied those claims. VW plans to build some electric cars at its Chattanooga, Tennessee, plant, which currently builds gasoline models.

Editors' Recommendations

Stephen Edelstein
Stephen is a freelance automotive journalist covering all things cars. He likes anything with four wheels, from classic cars…
Samsung Galaxy S11 Plus may have a battery for days and a 108-megapixel camera
samsung galaxy s11 plus big battery and 108 megapixel camera leaks el4lsgkucait2bv

We're getting closer to seeing what the Samsung Galaxy S11 looks like for real, and as a result, the number of leaks claiming to show the new device has increased. Of the new features expected in 2020's new Samsung flagship, the battery size, and new camera suite have been some of the most speculated upon -- and today, new leaks are saying we can expect a much larger battery in the Galaxy S11 Plus, and some new camera tech to boot.

It could well be the worst kept secret of 2019 that Samsung is planning on adding a 108-megapixel main lens to the upcoming Galaxy S11 range, with multiple rumors dating back several months now -- so further rumors of that 108-megapixel sensor only mean it's even more likely to be accurate. But it's not the 108-megapixel sensor itself that's got us rattling our keyboards today, it's the rumor from reputable and noted leaker Ice Universe that the Galaxy S11 Plus will use that 108-megapixel lens to take 12-megapixel images.

Read more
Too hip for a minivan? Check out VW’s all-electric ID.Space Vizzion concept
ID. SPACE VIZZION CONCEPT profile

Volkswagen unveiled yet another concept car in its ID series of electric vehicles at the 2019 Los Angeles Auto Show. With previous ID concepts showcasing hatchback, crossover, and even dune buggy designs, you'd think VW would be out of ideas. But the Volkswagen ID.Space Vizzion promises something different. Previewing a possible production model that could launch in 2021, Volkswagen claims it will defy categorization.

The ID.Space Vizzion will combine "the aerodynamic characteristics of a Gran Turismo with the spaciousness of an SUV," according to Volkswagen. The concept car has a tall, upright roofline, but without the ground clearance normally associated with SUVs. It looks a bit like the recently discontinued Ford Flex, which also tried to combine car and SUV styling elements. It also means the ID.Space Vizzion looks a bit like a minivan without sliding doors.

Read more
VW’s electric ID.3 will talk to you using lights straight out of Knight Rider
volkswagen id3 electric car can communicate using lights id 3

The Volkswagen ID.3 is the first in a long-awaited line of electric cars from Germany's largest automaker. But an electric powertrain isn't the ID.3's only high-tech feature. The car will also be able to communicate with people using lights. It may sounds like VW's engineers have been watching too much Knight Rider, but the automaker claims it will change the way people interact with cars for the better.

Here's how the light-based communication system works. An LED strip running across the dashboard changes colors depending on different functions. Green indicates a fully charged battery, for example, while red is used for warnings. The LED strip can also indicate whether the car is on, and whether the doors are locked or unlocked, according to Volkswagen. It can also sync up with the navigation system, blinking when the car thinks it's time to change lanes. Talk about backseat driving.

Read more