Volkswagen Expands Use of 'Prismatic' Batteries in Electric Vehicles

Herbert Diess, Chairman of the Volkswagen Group, is delivering opening remarks at Power Day, where the group-wide roadmap for battery and charging-related technologies is being announced.

[Asia Economy Reporter Changhwan Lee] On the 15th (local time), Volkswagen Group held a Power Day in Wolfsburg, Germany, and announced its technology roadmap for the battery and charging sectors to be pursued until 2030.

The announced roadmap focuses on reducing the complexity and cost of batteries and establishing electric vehicles as attractive and selectable options for as many consumers as possible.

The most attention in the market was drawn to the change in the form of electric vehicle batteries. Volkswagen has mainly used pouch-type electric vehicle batteries so far but explained that it will expand the use of prismatic batteries in the future.

Electric vehicle batteries are classified into cylindrical, pouch, and prismatic types depending on their form. Korean companies LG Energy Solution and SK Innovation focus on pouch-type batteries, Chinese company CATL and Korean Samsung SDI focus on prismatic batteries, and Japanese Panasonic focuses on cylindrical batteries.

As a result of this decision, it is analyzed that LG Energy Solution and SK Innovation, which have supplied pouch-type batteries to Volkswagen so far, will inevitably be adversely affected. On the other hand, Chinese company CATL is expected to benefit. More than 40% of Volkswagen's sales occur in China, and since CATL, a major Chinese battery company, adopts prismatic batteries, it is analyzed that this decision considered the electric vehicle business in China.

Volkswagen Group has set a goal to secure battery cell supply after 2025. The group plans to build six gigafactories in Europe with a total production capacity of 240 gigawatt-hours (GWh) within the next 10 years.

Herbert Diess, Chairman of Volkswagen Group, said, “E-mobility is a core business of the group, systematically integrating various stages of the value chain. We are striving to gain a long-term advantage in the competition to provide the optimal battery and the best customer experience in the era of zero-emission mobility.”

This content was produced with the assistance of AI translation services.