In a move to ensure the security of its supply chain of EV batteries, Volkswagen has formed a bi-weekly task force with South Korean battery cell supplier LG Chem.
VW like many others in the market is aiming at a surge in the number of EVs in their lineup. The company plans for launching at least 18 full-electric cars all over the world by the end of 2022, based on the MEB platform under its Roadmap E electrification strategy.
Reports suggest that top Volkswagen executives are expected to hold a meeting with their counterparts at LG Chem in November next year at their production site in Poland to talk about potential problems that may arise.
“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,” Thomas Ulbrich, the VW brand’s management board member responsible for electric mobility, told reporters in Dresden, Germany.
Adding to this, Ulbrich also stated that while LG and its suppliers may be used to producing battery cells for consumer electronics, they have little experience with the demanding requirements and exact processes needed for automotive applications.
However, this was the only way the German auto giant could produce the required 300,000 EVs a year by 2021. “The battery cell availability is for us the base really to produce the cars,” Ulbrich said, “but we are taking care of it.”