Volkswagen Chooses LG For Battery Future

The initial 44 suppliers set to work with Volkswagen on the FAST initiative have been announced. Interestingly, Volkswagen has chosen to go with LG Electronics as its supplier of high-voltage batteries.

For those of you who are unaware of the background, the FAST initiative (Future Automotive Supply Tracks) is intended to help Volkswagen and it suppliers adapt to the “challenges” currently facing the industry. In particular, it’s intended to help speed up the implementation of technical innovations.

Here’s a list overview of the initial 44 FAST partners, showing specialization areas:

Volkswagen electric vehicle suppliers

These first 44 supplier partners were chosen based on “their outstanding performance in their respective field of competence based on a systematic selection process,” according to Volkswagen reps.

A prominent member of the Volkswagen AG Board of Management, Dr Francisco Javier Garcia Sanz, commented: “In future, it will not be the corporation with the best negotiating skills that has the advantage, but the one that has also successfully established an optimal supplier network. The nominated FAST suppliers are important beacons in our network and I am looking forward to even closer and more intensive collaboration.”

Green Car Congress provides some further details:

In the next step, the Group will be deepening top management level discussions with the nominated partner companies. Going forward, the respective strategies and technological orientation in the individual categories will be even more closely coordinated and aligned. The aim is to successfully implement joint technological innovations ever faster than in the past and to realize vehicle projects worldwide even more efficiently and effectively.

The first nomination phase will come to an end in spring 2016. Suppliers not yet nominated still have the opportunity to qualify for the FAST program. Volkswagen continually reviews supplier performance for this exclusive partnership and adjusts the circle of FAST suppliers as required. The “FAST Summit”, the first exclusive strategy conference with all partners, will take place in spring 2016.

The choice of LG as battery supplier certainly is interesting. Yet another company choosing LG, boosting the company’s debatable claim that it is the #1 EV battery manufacturer in the world.

Image via Green Car Congress

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