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22 Jul 2020, 13:32
Alex Dziadosz

Volkswagen warns that US battery row could disrupt supplies

manager magazin / Reuters

Car-makers Volkswagen and Ford say that a legal battle between two South Korean battery manufacturers in the United States could hamper the production of electric cars and lead to delivery delays and job losses, writes manager magazin online’s Lukas Schürmann.

The statements came as part of a legal dispute between SK Innovation and its rival LG Chem, which has accused SK Innovation of trade secret theft and is trying to block it from producing battery cells at a plant in the United States. Volkswagen and Ford are asking the United States International Trade Commission (ITC) to let SK Innovation go ahead with production, saying that failing to do so could lead to “catastrophic supply disruption," reports news agency Reuters.

VW has been moving vigorously into electric mobility since its role in the dieselgate emissions fraud scandal was revealed. The ID.3 is its first fully electric model and is supposed to be its door opener for the mass use of e-cars.

The battery row highlights one of the main problems in the e-mobility market: the availability of batteries, Schürmann writes. The need to secure batteries has led Volkswagen to partner with Sweden’s Northvolt and Daimler with China’s Farasis, among other investments.  

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