The end to a battery battle paves the way for Ford and Volkswagen’s electric-vehicle race. This comes as Volkswagen’s ID.4 was awarded 2021 World Car of the Year – marking a major win for Volkswagen in the EV arena.
It was recently announced that SK Innovation and LG Energy, the energy arms of two of South Korea’s largest entities, have ended a long dispute over battery technology. The pair has reached a multibillion-dollar settlement that could have threatened a supply chain vital to both Ford and Volkswagen in the production of electric vehicles.
According to President Biden there is a distinct need “for a strong, diversified and resilient U.S.-based electric-vehicle battery supply chain, so we can supply the growing global demand for these vehicles and necessary components.”
Expanding electric-vehicle adoption in the U.S., including ramping up domestic battery production, is also an important part of Biden’s $3 trillion infrastructure plan, which earmarks $174 billion for electric vehicles. This comes on the back of UBS projections of a global battery-cell shortage by 2025, making companies such as SK Innovation and LG Chem in prime position to profit from high demand and supply restrictions.
Car makers Volkswagen expressed relief at the settlement with Scott Keogh Chief Executive for Volkswagen Group of America, thanked the Biden administration in a statement on LinkedIn, stating the group was starting U.S. production of the all-electric ID.4 SUV in early 2022.
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The full article can be found at: https://www.barrons.com/articles/how-the-end-to-a-south-korean-battery-battle-paves-the-way-for-ford-and-volkswagens-electric-vehicle-race-51618238766