business

Feuding Korean firms risk disrupting electric car battery supplies

8 Comments
By Hyunjoo Jin and Heekyong Yang

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Stung by missing out on the VW deal to the new kid on the block and the departure of 77 employees for its rival across the Han River in Seoul,

In one court filing, LGC said its rival poached employees working on its own project to supply batteries for VW's MEB electric vehicle architecture

LG should be asking themselves, "Why did all of those employees leave?"

But, I don't see that happening.

gary

4 ( +4 / -0 )

I've commented before that South Korea is its own worst enemy and this is a great example of that.

Ford spokeswoman Jennifer Flake said it was encouraging LGC and SKI to resolve their conflict without litigation and that it believed there was sufficient demand for multiple suppliers.

"We are aware of the issue. As a normal course of action, we have business continuity plans in place to protect our interests," Flake said in an emailed statement to Reuters.

GM spokesman Patrick Morrissey said the company was aware of the dispute and at this point it did not expect any impact on the production of its Chevy Bolt electric vehicle.

Forget all the fluff in the rest of the article about "disrupting car battery supplies" that the South Korean authors want you to believe, the above is all you need to know about how much impact any squabbling between these two South Korean companies will have.

It's as if the authors want you to believe that only these two companies can supply the batteries, and if they (either or both of them) don't, then production of EV vehicles will come to a halt. What a laugh.

South Korean battery suppliers don't matter as much as these authors want you to believe.

5 ( +6 / -1 )

Is there nothing these guys won't throw down over?

6 ( +6 / -0 )

Come on now, these companies are doing it all wrong.

They're supposed to be feuding with Japan, not with each other.

Sheesh.

5 ( +5 / -0 )

@Hillclimber

South Korean battery suppliers don't matter as much as these authors want you to believe.

Korea is the only place where one can buy batteries suitable for US and EU market safety standards.

Other automakers don't want to deal with Tesla-like fires thanks to Panasonic batteries.

@oldman_13

They're supposed to be feuding with Japan, not with each other.

When Korean EV battery dominance is absolute, then they fight amongst themselves.

-4 ( +0 / -4 )

Korea is the only place where one can buy batteries suitable for US and EU market safety standards.

"Ford spokeswoman Jennifer Flake said it was encouraging LGC and SKI to resolve their conflict without litigation and that it believed there was sufficient demand for multiple suppliers.

We are aware of the issue. As a normal course of action, we have business continuity plans in place to protect our interests," Flake said in an emailed statement to Reuters."

"GM spokesman Patrick Morrissey said the company was aware of the dispute and at this point it did not expect any impact on the production of its Chevy Bolt electric vehicle."

I'm going to go out on a limb here and say Ford and GM know more about battery suppliers than you do.

The biggest threat to South Korea is South Korea.

3 ( +3 / -0 )

Samit BasuNov. 27  09:09 pm JST

Korea is the only place where one can buy batteries suitable for US and EU market safety standards.

Other automakers don't want to deal with Tesla-like fires thanks to Panasonic batteries.

Contradicting yourself in the same post.

You say that Korean batteries are the only ones that meet US standards then say that Panasonic supplies Tesla.

About the fires, you can read about all known Tesla fires here:

https://en.wikipedia.org/wiki/Plug-in_electric_vehicle_fire_incidents

All but the most recent ones (still under investigation) had fires caused by some production fault with the electrical wiring, metal debris hitting the car's distribution box causing the fire, etc. None of them were due to batteries just exploding by themselves.... like you hope everyone would think.

0 ( +1 / -1 )

When Korean EV battery dominance is absolute, then they fight amongst themselves.

Hilarious.

In 2017, the market share (by country & by GWh) in order; China (53%), Japan (16%), S. Korea (11%) & others (20%) - https://www.merics.org/sites/default/files/inline-images/181012_Economic-Indicators_Battery-Industry_Infographics_Q3-2018_finalfinal2_0.jpg

While last year, 2018, China (49%), Japan (22%), S. Korea (15%) & others (14%) - https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTVhxq31CzFBFvoy4RfagOz_1DKiRUGr37xQkijSyQrTLNjEAmY&s

the above is all you need to know about how much impact any squabbling between these two South Korean companies will have.

S. Korean companies have never the reach the height, manufacturing or supply choke-hold in advanced & hi tech components like Japan has attained for the past few decades

0 ( +1 / -1 )

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