Volkswagen AG will rework its €50 billion battery-purchasing plan due to concerns that its supply agreement with Samsung SDI Co. Ltd., one of its supply partners, might fail, Bloomberg News reported May 27, citing people familiar with the matter.
Samsung reportedly initially agreed to deliver batteries for over 20 gigawatt hours but the parties later reached an impasse during negotiations on production volume and schedule. This reduced pledged supplies to less than 5 gigawatt hours, the news outlet said.
According to the report, 20 gigawatt hours can power 200,000 cars with 100 kilowatt-hour battery packs.
In an e-mailed response to Bloomberg, the German carmaker said Samsung continues to be its battery cell supplier in Europe.
Samsung did not immediately respond to a request for comment from S&P Global Market Intelligence.
The development comes a day after it was reported that Volkswagen plans to "intensify" talks with Swedish lithium-ion battery maker Northvolt AB on plans to jointly produce battery cells in Germany.