BMW Group has contracted Samsung SDI in Europe and LG Energy Solution (LGES) in the US as additional cell suppliers for its Gen6 high-voltage batteries.
Following the nominations, the car maker will receive European-produced cells from CATL, EVE Energy, and Samsung SDI, whilst LGES will deliver cells within the US.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The appointments follow the company’s “local for local” principle, whereby components are acquired close to vehicle assembly locations wherever possible.
Both manufacturers will supply BMW Group from their established regional plants beginning in the late 2020s.
BMW stated that targeted localisation across Europe, Asia, and North America reduces transit distances and bolsters supply security, while a globally diversified network supports flexibility and resilience.
Assembly of the Gen6 high-voltage batteries will take place at five newly constructed facilities adjacent to vehicle plants in Debrecen, Hungary; Shenyang, China; Woodruff, US; San Luis Potosí, Mexico; and Irlbach-Straßkirchen in Lower Bavaria, Germany.
Series production of the batteries commenced in Shenyang last month. Following Debrecen and Irlbach-Straßkirchen, Shenyang is the third location in the new global production network for Gen6 battery technology.
BMW added that localising industrial value creation remains highly complex, particularly for cell production, requiring heavy investment and supply arrangements with global technology leaders willing to set up operations locally.
It added that fostering regional battery ecosystems over the long term depends on feasible political regulations and attractive local conditions for the necessary industrialisation periods.
The group also retains internal development, production, and recycling capabilities at three Bavarian competence centres.
The Battery Cell Competence Centre in Munich investigates new cell technologies, whereas the Cell Manufacturing Competence Centre in Parsdorf tests near-series cells and evaluates high-quality, resource-efficient production.
In Salching, German circular economy service provider Encory will construct and operate the Cell Recycling Competence Centre, recovering raw materials using BMW’s direct recycling method to reintegrate into production.
BMW purchasing and supplier network management board member Nicolai Martin said: “We aim to ensure our products’ global competitiveness and to be successful in different markets. 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.”
