The BMW Group has announced it’s deepening its business relationships with battery cell manufacturers CATL (Contemporary Amperex Technology Co. Limited) and Samsung SDI.
Its original order with CATL, worth four billion euros announced in mid-2018, will now be increased to 7.3 billion euros.
It’s also signed a long-term supply contract for its fifth-generation electric drive trains with its second battery cell supplier, Samsung SDI.
Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, says: “In this way, we are securing our long-term battery cell needs. Every cell generation is awarded in global competition to the leading manufacturer from both a technology and a business perspective. This ensures we always have access to the best possible cell technology.”
He adds: “We strongly supported and played an active part in establishing CATL in Germany.”
The company has invested a total of 200 million euros in its new Battery Cell Competence Centre in Munich which is set to create up to 200 jobs.
BMW says the production of battery cell prototypes makes it possible to analyse and fully understand cell value creation processes.
Wendt comments: “Whether we then produce the cells ourselves at a later date, will largely depend on how the supplier market develops.”
By 2023, the BMW Group says it will have 25 electrified models in its line-up.