On the Dash:
- BMW battery supplier network adds Samsung SDI in Europe and LG Energy Solution in the U.S.
- Deliveries from both new suppliers begin in the late 2020s, using existing plants in each region.
- The move reflects a wider automaker push to cut reliance on China for key battery components.
BMW Group has added Samsung SDI and LG Energy Solution as battery cell suppliers for its sixth-generation high-voltage batteries. Samsung SDI will supply cells to BMW in Europe, and LG Energy Solution will supply cells in the United States, with deliveries starting in the late 2020s.
Both companies will deliver from existing plants in their regions, according to a press release issued Monday. The automaker says the move supports its “local for local” strategy, which aims to buy components close to where it builds vehicles.
BMW adds two Korean suppliers
BMW will now source European-made cells from CATL, EVE Energy and Samsung SDI. LG Energy Solution joins the supply network in the United States. The release does not name the cell chemistry or format for either new supplier. It also does not say which Samsung SDI plant will serve BMW, and it gives no contract values or volumes.
The move fits a broader push among European and US automakers to cut their reliance on China for key components, according to Bloomberg. China dominates global battery production and the processing of key materials, leaving automakers exposed to capacity constraints near their own plants.
BMW builds Gen6 battery assembly sites near its factories
BMW has set up five assembly sites for Gen6 high-voltage batteries close to its vehicle plants:
- Irlbach-Straßkirchen, Germany
- Debrecen, Hungary
- Shenyang, China
- Woodruff, South Carolina
- San Luis Potosí, Mexico
The German automaker says shorter distances between suppliers, battery plants and vehicle plants increase supply security and strengthen regional value creation. The release also describes a globally diversified supplier network as a source of resilience and flexibility.
Diversifying procurement is an integral part of the company’s purchasing strategy, and the cell partnerships strengthen value creation in Europe and the US. The global partner network gives BMW a resilient, flexible and competitive battery cell supply.
No immediate impacts for BMW dealers
Cell deliveries from both new suppliers begin in the late 2020s, so the agreements don’t affect the automaker’s current EV supply. The LG Energy Solution arrangement will take shape over several years for U.S. dealers, as a second U.S.-based cell source gives the automaker more options for supplying its American EV production. But how much that helps dealer availability will depend on how quickly BMW and its suppliers ramp up.
The company says competitive localization of battery production demands significant investment and supply chains built with global technology leaders, along with their willingness to set up locally. The company says long-term regional battery ecosystems also need attractive local conditions and feasible political regulations.
