South Korean battery-makers Samsung SDI and LG Energy Solution have signed deals to supply battery cells for BMW Group’s sixth-generation high-voltage batteries, the German luxury automaker said Tuesday.
Under the agreement, Samsung SDI will supply cells to BMW’s European facilities, and LG Energy Solution will supply its plants in the US. Both companies will deliver from their production sites in the respective regions, with deliveries expected to begin in the late 2020s.
With the latest addition, BMW’s battery cell suppliers in Europe will include Samsung SDI, China’s CATL and EVE Energy in Europe.
The companies did not disclose the contract value or planned supply volumes.
The agreements are part of BMW’s “local for local” strategy, under which the automaker sources key components close to its high-voltage battery and vehicle production facilities.
“Diversifying procurement is an integral part of the BMW Group’s purchasing strategy,” said Nicolai Martin, member of the Board of Management of BMW AG, which is responsible for purchasing and managing the supplier network.
“To achieve this, we operate as locally as possible in our value chains, leveraging the potential of our global procurement markets. Through our battery cell partnerships, we are actively strengthening value creation in Europe and the US.”
Hendrik Lang, BMW Group’s head of high-voltage battery purchasing and quality, said partnerships with leading battery cell manufacturers worldwide would help the company secure “resilient, flexible and competitive” supply.
BMW is also expanding its localized battery assembly network to support electric vehicle production across major markets.
The automaker has established five new high-voltage battery assembly facilities near its vehicle production plants in Irlbach-Strasskirchen, Germany; Debrecen, Hungary; Shenyang, China; Woodruff, South Carolina; and San Luis Potosi, Mexico.
Battery cells are delivered to these regional facilities, where they are assembled into battery packs for use in BMW's electric vehicles.
By Ahn Sung-mi (sahn@heraldcorp.com)
