The BMW Group has announced a significant expansion of its battery supply chain for its upcoming sixth-generation high-voltage batteries. The automotive giant has entered into new agreements with two leading battery manufacturers, Samsung SDI and LG Energy Solution, to secure crucial battery cells for its electric vehicles.
Global Sourcing with Local Focus
Under these new partnerships, both Samsung SDI and LG Energy Solution will commence supplying battery cells to BMW starting in the latter half of the 2020s. Crucially, the supply will be localized to specific regions. Samsung SDI will cater to BMW’s European factories, while LG Energy Solution will supply the company’s plants in the United States. This strategic sourcing aligns with BMW’s established ‘local for local’ principle within its global supplier network. The company prioritizes sourcing components as close as possible to its vehicle production bases.
BMW emphasizes that this targeted localization of its supply chain is designed to strengthen value creation in key strategic regions like Europe, Asia, and North America. It also serves to shorten transport distances, thereby enhancing supply chain security and resilience. The creation of a diversified, global supplier network is paramount for maintaining flexibility and robustness in the face of evolving market demands and potential disruptions.
Expanded European and North American Supply
Following these latest appointments, BMW’s roster of high-voltage battery cell suppliers in Europe will now include CATL, EVE Energy, and Samsung SDI. In North America, LG Energy Solution will be the designated supplier. This multi-supplier strategy is a key component in ensuring a stable and competitive supply of advanced battery technology for BMW’s expanding electric vehicle portfolio.
“Our global network of cooperation with leading cell manufacturers ensures a high level of resilience, flexibility, and cost-competitiveness for our battery cell supply,” stated Hendrik Lang, Head of High-Voltage Battery Procurement and Quality at BMW Group. He further noted that the ‘local for local’ principle extends beyond supplier relationships to the assembly of the sixth-generation high-voltage batteries themselves.
Strategic Battery Production Network
In line with its ‘local for local’ strategy, BMW is also establishing a network of five new battery production facilities strategically located near its vehicle assembly plants worldwide. These new facilities are situated in:
- Irlbach-Straßkirchen (Lower Bavaria), Germany
- Debrecen, Hungary
- Shenyang, China
- Woodruff, South Carolina, USA
- San Luis Potosí, Mexico
This integrated approach, combining localized sourcing of cells with proximity-based battery assembly, underscores BMW’s commitment to building a highly efficient, secure, and sustainable supply chain for its future generations of electric vehicles. The company continues to invest heavily in electrification, and securing a robust supply of high-quality battery cells is fundamental to its ambitious rollout plans.
