Business · Companies · 5 hrs ago
BMW adds Samsung and LG as battery-cell suppliers in Europe and the US
BMW is adding Samsung SDI and LG Energy Solution as battery-cell suppliers for its sixth-generation electric-car batteries.
Samsung is expected to supply cells from Europe, while LG is expected to supply them from the United States.
Deliveries are due to begin at the end of the decade, using existing factories in those regions.
The move is part of BMW’s “Local for Local” approach, which aims to source components near the factories where vehicles are built.
BMW says regional sourcing can shorten transport routes and improve supply security, while adding suppliers gives it more options if one source is disrupted.
The cells will use a cylindrical design for BMW’s new batteries, which the company says can offer greater energy density, more range and shorter charging times than the previous generation.
Regional production does not make the supply chain fully independent, since the origins of key raw materials and battery ingredients remain unclear.
BMW will source battery cells from Samsung SDI in Europe and LG Energy Solution in the US from the end of the 2020s.
The new suppliers are part of BMW’s effort to diversify its battery-cell procurement and reduce reliance on China.
BMW says regional sourcing can shorten transport routes, strengthen supply security and support value creation in Europe and the US.
The cells are intended for BMW’s sixth-generation high-voltage batteries.
The companies have not disclosed the agreements’ volumes or duration.
- Who
- BMW, Samsung SDI and LG Energy Solution.
- What
- BMW will add Samsung SDI as a battery-cell supplier in Europe and LG Energy Solution as a supplier in the US.
- When
- Deliveries are expected to begin from the end of the 2020s.
- Where
- Samsung SDI is to supply BMW plants in Europe, and LG Energy Solution is to supply its US locations.
- Why
- BMW says regional sourcing will shorten transport routes and strengthen supply security. The move also diversifies its suppliers and reduces reliance on China.
This story does not have two clearly opposing sides.
BMW announced agreements to source battery cells from Samsung SDI for Europe and LG Energy Solution for the US.
The new suppliers are expected to begin deliveries to BMW.
- European supplier
- Samsung SDI
- US supplier
- LG Energy Solution
- Expected start
- End of the 2020s
- Battery generation
- Sixth-generation high-voltage batteries
- Existing European suppliers
- CATL and EVE Energy
4 sources
What people are saying
The diversification of procurement is an integral part of the BMW Group’s purchasing strategy
With our battery-cell partnerships, we are deliberately strengthening value creation in Europe and the US