Ambitious plans of Volkswagen to mass produce batteries for electric vehicles with support from the Korean partner SK Innovation may face challenges due to a rejection of the cooperation with the current suppliers of batteries for Volkswagen, especially LG Chem.
Multi-billion dollar project that is expected to generate between VW and SK Innovation close partnership on the example of Tesla and Panasonic are not satisfied with competitors from LG so that they are ready to immediately stop the current supply.
Because Volkswagen is now not able to compensate the termination of deliveries of batteries from other sources, the company began negotiations with suppliers in the tripartite regime: Volkswagen, SK Innovation, LG Chem.
In this situation, it should be noted that threats LG Chem more like outright blackmail to which the company uses due to its strong impact on the market. The company actually blocks the development of the industry and not to develop its competitors. It is likely that LG Chem wants to expand their own large-scale production and get all the lucrative contracts.
Recall, this is not the first negative thing LG Chem, LG also dictates Audi raising prices on batteries for electric crossover e-tron quattro.