BMW has placed a massive battery order with Chinese battery producer CATL, according to a report in a German business daily.
Handelsblatt reports that BMW Group CEO Harald Krüger told the newspaper that BMW is ordering several billions of euros worth of batteries from CATL, a move that frustrates EU hopes that it would find a European supplier.
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 large batteries order from BMW is for its upcoming electric cars and the report said CATL will build a special factory in Germany to supply BMW. Reports in Germany say the investment may be made in the eastern German city of Erfurt.
Krüger told Handelsblatt that while a European producer would make sense if it was competitive, BMW needs a supplier ‘who is already there.’ The agreement with CATL to build a factory in Germany to supply the order appears to be an important element in the supply deal.
BMW is investing EUR200m in its own battery research in Munich with a focus on higher energy density solid-state batteries that will likely hit the market in the mid-2020s.
