BMW adds Samsung SDI and LG Energy Solution as Gen6 battery cell suppliers
BMW will source Gen6 cells from Samsung SDI in Europe and LG Energy Solution in the US from the late 2020s, alongside CATL and EVE Energy.
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BMW Group has signed Samsung SDI in Europe and LG Energy Solution in the US as additional battery cell suppliers for its sixth-generation (Gen6) high-voltage batteries, the company said on November 9, The EV Report reported. Both suppliers will deliver from their existing plants in those regions from the late 2020s.
BMW did not disclose contract values, volumes or which specific plants will produce the cells.
The new supplier map
With the new contracts, BMW's European-made Gen6 cells will come from CATL, EVE Energy and Samsung SDI. LG Energy Solution will also supply BMW in the US.
Gen6 batteries are assembled at five new BMW plants built near its vehicle factories:
- Irlbach-Straßkirchen, Lower Bavaria, Germany
- Debrecen, Hungary
- Shenyang, China
- Woodruff, US
- San Luis Potosí, Mexico
BMW said distances between cell suppliers, battery plants and vehicle plants stay short under this setup.
"Local for local"
BMW says it applies a "local for local" principle, buying components close to where vehicles are built wherever possible. The company argues this strengthens value creation in Europe, Asia and North America, shortens transport routes and improves supply security, while a globally diversified supplier base adds resilience.
"Through our battery cell partnerships, we are actively strengthening value creation in Europe and the US," said Nicolai Martin, the BMW AG board member responsible for purchasing and the supplier network.
BMW also called localizing cell production "highly complex," saying it needs heavy investment, efficient supply chains with technology leaders and partners willing to build local operations. Its long-term aim is to build complete regional battery ecosystems, which it says depends on attractive local conditions and workable political regulation.
In-house cell expertise
BMW keeps its own cell development, production and recycling know-how at three Bavarian sites:
- Battery Cell Competence Center, Munich: researches new cell technologies.
- Cell Manufacturing Competence Center, Parsdorf: studies resource-efficient, high-quality cell production and builds near-series cells.
- Cell Recycling Competence Center, Salching: a new center that recovers raw materials with BMW's direct recycling process. Encory GmbH will build and run it, and BMW owns the intellectual property.
"Our global partner network with leading cell manufacturers ensures that we have a resilient, flexible and competitive battery cell supply," said Hendrik Lang, BMW's head of purchasing and quality for high-voltage batteries.
BMW has also reported a long-distance test of a new i3: the company said an i3 50 xDrive crossed Europe from the North Cape to Tarifa on 2 hours 46 minutes of charging.