Volkswagen group has announced a series of agreements with Asian manufacturers for the supply of batteries for electric and hybrid vehicles through to 2025.
The automaker has signed agreements with South Korea's Samsung SDI and LG Chem for the supply of lithium-ion batteries for its next generation of vehicles to be produced in China and Europe through to 2025.
VW also signed a similar agreement with China's Contemporary Amperex Technology for the local supply of automotive lithium-ion batteries. It has yet to secure long term battery pack supplies for its North American operations but this is expected to be forthcoming.
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The automaker lifted its growth expectations for global EV and hybrid demand and is now targeting annual sales of around 3m units by 2025. The company said it has already secured US$25 billion in battery supplies globally for this segment.
For LG Chem, this is one of 30 deals it has signed so far for the supply of automotive lithium-ion battery packs but no doubt this is one of the largest.
The electronics giant also has a battery plant in North America so it expects to sign up more business with VW in the near future.
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By GlobalData
