Battery suppliers fear technology leaks from electric car manufacturers

It appears that the progress of the electric vehicle has been slowed by concerns from battery manufacturers who want to prevent the use of their proprietary technology by third parties. So it is claimed that there is friction between major auto manufacturers and battery suppliers.

According to a report by the Japan Economic Service Nike Asia Many car manufacturers are asking their suppliers to transfer battery technologies in order to enable the rapid expansion of the production capabilities of their cars’ electric storage devices. This is exactly what battery manufacturers want to prevent, because their competitors should not benefit from using technologies previously developed by others.

Car manufacturers: transfer technology! Battery Manufacturer: N!

US automaker General Motors (GM) is said to have asked Korean manufacturer LG Energy Solution to “share” some of its battery technology with other suppliers. Ford is also said to have asked Korean manufacturer SK On, part of the SK Innovation Group, to pass on certain technologies during negotiations to create a joint venture to build electric car batteries.

According to the report, LG fears GM will “steal” its technology for use in battery production in its factories. SK is said to have similar concerns because it believes Ford could pass the technology on to outside companies, which in turn would supply the US automaker with batteries for electric cars.

For battery manufacturers, of course, it is primarily about protecting their core business and continuing to benefit from the technological advantages developed through years of research. Although car manufacturers such as Volkswagen, Toyota, Stellantis, General Motors and Ford are trying to develop new batteries themselves, they are relatively late in development compared to experienced Asian battery manufacturers such as LG, SK and Samsung.

LG is said to have more than $200 billion in battery orders on its books. For the Korean company, cooperation with major auto companies is an advantage, because it has access to modern technologies and can guarantee a safe long-term supply.


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The Wall Street Journal