LG Energy Solution and Samsung SDI have entered into agreements with BMW Group to supply high-voltage battery cells for the automaker’s vehicles starting in the late 2020s. The announcement was made by BMW on November 10, 2023. Under these agreements, both companies will provide sixth-generation (Gen6) battery cells produced at their facilities in the United States and Europe.
BMW’s Strategy for Battery Supply
BMW Group is enhancing its electric vehicle (EV) battery supply network by partnering with these two manufacturers. This move aligns with the company’s “local for local” sourcing strategy, which aims to procure components close to its vehicle production sites. Nicolai Martin, a member of BMW AG’s Board of Management, stated that diversifying procurement is crucial for maintaining global competitiveness and success in various markets.
High-voltage batteries are essential for EV performance, influencing factors such as driving range and charging speed. The partnerships with LG Energy and Samsung SDI are intended to secure a reliable supply of advanced battery technology as BMW prepares to expand its electric vehicle lineup. BMW’s diversified approach also includes sourcing battery cells from other manufacturers like CATL and EVE Energy in Europe.
New Battery Assembly Facilities Worldwide
In addition to sourcing batteries, BMW is establishing new battery assembly facilities in key locations to support its production network. These facilities are located in:
- Irlbach-Straßkirchen, Germany
- Debrecen, Hungary
- Shenyang, China
- Woodruff, United States
- San Luis Potosí, Mexico
By situating these facilities close to vehicle production sites, BMW aims to reduce logistics costs and improve delivery times.
Importance of Battery Supply for Electric Vehicles
The agreements with LG Energy Solution and Samsung SDI highlight the growing importance of securing a robust battery supply chain as the automotive industry shifts towards electric vehicles. These partnerships not only support BMW’s production needs but also contribute to strengthening industrial value creation in Europe and North America.
Next steps regarding the specific timelines for battery deliveries were not disclosed by BMW.
