Munich/Parsdorf. A tiny piece of the future began rolling off the production line in Parsdorf today: 95 millimetres tall, cylinder-shaped, with a diameter of 46 millimetres. These are the new battery cell samples – like those that will be used in the models of the Neue Klasse from 2025 onwards – being produced at the new Cell Manufacturing Competence Centre (CMCC) in Parsdorf. The BMW Group is thus positioning itself to ramp up electromobility efficiently and showcasing its leading role in battery cell technology.

“With the Cell Manufacturing Competence Centre, we are strengthening Germany’s capacity for innovation,” explained Milan Nedeljković, member of the Board of Management of BMW AG, responsible for Production. “In this way, we are making an important contribution to the quantum leap in technology in the Neue Klasse.”

“Production of battery cell samples in Parsdorf marks the next logical step in our battery cell strategy,” said Frank Weber, member of the Board of Management of BMW AG, responsible for Development. “The Cell Manufacturing Competence Centre is the perfect complement to our existing Battery Cell Competence Centre in the north of Munich. Development takes place there, then we scale the best product towards a series process in Parsdorf. Thanks to cross-divisional collaboration, we are able to link product and process in a unique way.”

The CMCC in Parsdorf will enable the BMW Group to span the whole cell value creation process. With this know-how, the company is setting benchmarks for production, quality, performance, costs and environmental standards, which it is implementing in close cooperation with its partners for standard production of battery cells. At its battery cell competence centres in Munich and Parsdorf, the BMW Group is systematically pursuing future milestones, such as the ramp-up of the sixth generation of BMW electric drive trains and development of all-solid-state batteries (ASSB). About 80 employees work at the 15,000-square-metre Cell Manufacturing Competence Centre, which has benefited from a total investment of around 170 million euros. The German Federal Ministry of Economic Affairs and the Bavarian Ministry of Economic Affairs, Regional Development and Energy are supporting the project within the framework of the European funding process IPCEI (Important Projects of Common European Interest).

Recycling at the CMCC: Keeping materials in the loop

Raw materials are among the significant cost factors for cell production. Efficient and responsible use of raw and carrier material is therefore necessary and makes sense from both an environmental and economic perspective. At the new CMCC, experience will be gained from all processes and the lessons learned analysed to further optimise the use of resources. Residual materials from the production process will be collected at the CMCC, sorted and fed back into the cell production cycle. In addition to working on the cell manufacturing process, BMW Group experts are also focusing on reusing materials and components from the whole battery after its initial use in the vehicle.

At the Battery Cell Competence Centre (BCCC) in Munich, the first battery cells made from 100% recycled and/or secondary (battery-grade) cathode material have been manufactured and tested using state-of-the-art characterisation methods. Our cell suppliers are already delivering battery cells containing secondary raw materials (e.g. nickel) from various used-battery sources (incl. production waste). The long-term aim of the BMW Group is to reuse all raw materials in recyclable high-voltage batteries.

How the cell is created: Production steps for sample manufacturing at the CMCC

Cell manufacturing begins with electrode production. Here the base material, comprising, for example, graphite for the anode and nickel oxides for the cathode, with binders and solvents, is metered and mixed in a precisely measured ratio. This creates the so-called “slurry” – which means wafer-thin metal foils are coated and then compressed after drying. In technical jargon, this is referred to as “calendering”. The highest level of precision is required: The foil is just a few micrometres thick – in other words, thinner than the threads of a spider web, while the coating is in the micrometre range. During cell assembly, the coated foils, referred to as calendered electrodes, are wound into so-called “jelly rolls” using the separator and inserted into the cell housing. The cells are filled with electrolyte, then charged for the first time and finally checked for functionality and quality.

CMCC Parsdorf: Buildings with a focus on the environment

The CMCC in Parsdorf is built to high environmental standards. An immission control approval procedure has been carried out for the technical installations used in battery cell production – ensuring that the company complies with all requirements and guidelines. The CMCC will also operate fossil-free, relying on electricity produced using renewable energy, including from photovoltaic systems on the roof of the building. The building will also be supplied with regenerative heat produced using state-of-the-art groundwater and air heat pumps.

Sixth-generation BMW battery technology: New cell format and enhanced cell chemistry

The battery cell is responsible for electric vehicles’ core properties: range, driving performance and charging time. With the new BMW round cell specially designed for the electric architecture of the Neue Klasse models, it will be possible to significantly increase the range of the top model by up to 30 percent (according to WLTP).

The new BMW round cells come with a standard diameter of 46 millimetres and two different heights of 95 millimetres and 120 millimetres. Compared to the prismatic cells of the fifth BMW battery cell generation, the nickel content of the sixth-generation BMW round cells will be higher on the cathode side, while the cobalt content will be reduced. On the anode side, the silicon content will be increased. As a result, the cell’s volumetric energy density will improve by more than 20 percent.

Battery, drive train and charging technology in the Neue Klasse will have a higher voltage of 800 volts. Among other things, this will optimise how energy is supplied to direct current high-power charging stations, which can achieve a much higher charging capacity with a current of up to 500 amperes – thus reducing the time it takes to charge from ten to 80 percent by up to 30 percent.

Reducing the carbon footprint of battery cell production by up to 60 percent

The BMW Group is particularly focused on keeping the carbon footprint and resource consumption of production as low as possible, starting in the supply chain. For standard production of battery cells, the cell manufacturers commissioned will use cobalt, lithium and nickel containing secondary material. Together with the commitment by its cell suppliers to use only green power from renewable energies in production, the BMW Group will reduce the carbon footprint from battery cell production by up to 60 percent, compared to the current generation of battery cells.

Munich. The BMW Group is accelerating its ramp-up of e-mobility and increasingly relying on regional supply chains, in line with the principle “local for local”. The company aims to source components like battery cells close to vehicle production and gradually localise the supply chain for primary materials.

New partner to supply primary material for battery cell production 

Belgian company Umicore has now been recruited as a further partner for establishing a local supply chain in North America. Umicore will supply our battery cell supplier AESC with cathode active battery materials from a new plant in Ontario, Canada. This is an important step in strengthening the BMW Group's regional supply chains and securing the ramp-up of e-mobility.

In accordance with the “local for local” principle, our partner AESC is currently building a battery cell factory in Florence, South Carolina. With an initial capacity of 30 GWh/a, the facility will produce the innovative cylindrical lithium-ion battery cells specifically developed for the sixth generation of BMW eDrive technology. Electricity for production of the battery cells and cathode raw material will come exclusively from renewable sources.

“The BMW Group pursues a globally balanced procurement strategy in the three main geographical regions of the world. Our battery cell supplier in the US will source key primary materials from Canada going forward. We are pleased that Canada is playing a strong role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

Further BMW Group investment in South Carolina

Oliver Zipse, Chairman of the Board of Management of BMW AG, already announced an extensive investment of 1.7 billion US dollars in expansion of the US production site back in October 2022. This includes 700 million US dollars to build the BMW Group’s new assembly centre in Woodruff, which will provide high-voltage batteries for the fully-electric BMW X models in the future. In the initial phase, the roughly 93,000 sq. m. facility will produce sixth-generation battery modules. The assembly centre will also create about 300 new jobs.

Sixth-generation battery cell technology for better performance and sustainability 

The new sixth-generation battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent. At the same time, CO₂ emissions from cell production will be reduced by up to 60 percent: on the one hand, by cell suppliers relying on energy from renewable resources; on the other, by using a percentage of secondary material for the raw materials lithium, cobalt and nickel.

Leipzig. The BMW Group continues to invest in e-component production at Plant Leipzig and in the future of the site. A leasehold contract has now been signed for an area of land outside the plant premises, on the northern industrial estate – which is also home to the existing facility. The new plot for use by BMW consists of 12 hectares in total, eight of which will be built on in the first stage of construction. This will produce a logistics hall for the current fifth-generation high-voltage batteries and an office building, both of which are due to reach completion in mid-2024.

To mark the start of construction of the Supply Centre North, Petra Peterhänsel, Plant Director, Jens Köhler, Works Council Chairman, Frank Hager, Head of Production for High-Voltage Batteries, Clemens Schülke, Mayor and Alderman for Business, Labour and Digital in the City of Leipzig and Anja Hähle-Posselt, Director of the Office for Economic Development of the City of Leipzig, were joined by Karsten Dickerboom, representing the construction company Max Bögl Stiftung & Co KG, to perform the symbolic turning of the first sod.

Building the future

“These days car production is just as much a part of Leipzig’s economic DNA as the trade fair. We’re delighted that an already strong cluster is now growing further. What’s more, the focus will be on an eco-friendly footprint throughout. With this extension, BMW is sending out a clear signal around Leipzig as a base and electromobility. We are happy to partner the company and support the positive development of these areas,” said Mayor Clemens Schülke.

Plant Director Petra Peterhänsel also sees the transition to electromobility as an important building block in the plant’s development: “Leipzig continues to power ahead. Making the BMW i3, we were the BMW Group’s pioneer in electromobility. Now, with the development of e-component production and the upcoming launch of the MINI Countryman, the future is already taking shape.”

Investment in the transition to electromobility

In the first stage of construction, a warehouse, a two-storey office building and a loading tunnel with a combined gross area of 38,000 m² will be erected. There are also plans for a second construction stage, which will take the total investment to as much as 100 million euros. When all the construction work is complete, the new buildings at the Supply Centre North will provide workplaces for approx. 500 employees.

By 2026 the BMW Group aims for at least one in three new cars sold to be fully electric, so the need for high-voltage batteries will increase. Plant Leipzig is already a cornerstone in supplying e-components for the production network and provides one in three battery modules for the BMW Group’s fully electric vehicles. These include the BMW iX1, the BMW i5 and the BMW iX. With the new hall as a logistics centre for high-voltage batteries, Plant Leipzig is embracing this role even further, with a building that meets all the structural requirements for handling high-voltage components.

Beyond compliance: Stringent environmental standards

Planning the logistics hall, the team applied stringent environmental standards that go above and beyond legal requirements. The buildings will be powered not by fossil fuels, for example. Photovoltaic systems on the roof of the hall will generate approx. 3,000 kW in peak operations. In addition the hall will be heated by a heat pump. The office building will have a green roof, and trees at strategic points along the façade will keep indoor temperatures cool when the weather outside is hot.

The outside space will be landscaped with over 5,700 new shrubs and trees. This will continue the City of Leipzig and the BMW Group’s efforts to add to the green ring around the plant on the Northern Industrial Estate. Outdoor areas will be illuminated by insect-friendly lights, and parking spaces will be equipped with electric charging points for cars and trucks so that electric heavy goods vehicles can operate between the plant and warehouse.

E-component production as the powerhouse for the future of Leipzig

One of the drivers behind the extensive additions that are currently being made to Plant Leipzig – both on the premises and off – is e-component production. Measures will safeguard existing jobs and increase the number of new ones. At the moment more than 800 employees work in e-component production in Leipzig, rising to over 1,000 by 2024. Further jobs will be created with service providers.

From next year BMW Plant Leipzig will run all three stages of the high-voltage battery production process: cell coating, module production and high-voltage battery assembly. E-component production capacity has been steadily increasing since 2021, and at present battery cells are coated and assembled into modules there. One in three battery modules for fully electric vehicles by the BMW Group already comes from Leipzig today, and a battery assembly system is currently under construction, expected to go on stream early next year. The BMW Group is investing up to 1 billion euros in extending e-component production at Leipzig.

With BMW i3 production now phased out, 2024 will see Plant Leipzig launch its next fully electric model: the new MINI Countryman. The crossover will come with a choice of combustion engines or a fully electric drive, the high-voltage batteries for the latter being made directly in Plant Leipzig’s workshops.

Spartanburg (USA)/Munich. The BMW Group continues the roll-out of its electromobility plan with a new investment in the U.S. to expand Plant Spartanburg and the company’s manufacturing footprint in the U.S. BMW Group Chairman of the Board of Management, Oliver Zipse, announced today a $1.7 billion investment in its U.S. operations, including $1 billion to prepare for the production of electric vehicles at the company’s existing U.S. manufacturing facility in South Carolina, and $700 million to build a new high-voltage battery assembly facility in nearby Woodruff, SC. By 2030 BMW Group will build at least six fully electric models in the U.S.

Zipse was joined today at Plant Spartanburg by South Carolina Governor Henry McMaster, Secretary of Commerce Harry Lightsey III, Chairman of Spartanburg County Council Economic Development Committee, David Britt, and Woodruff, SC Mayor, Kenneth Gist as he also announced an agreement to source next generation lithium-ion battery cells from Envision AESC, which will build a new plant in the state.

“For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group. The home of the BMW X models that are so popular all over the world. Going forward, it will also be a major driver for our electrification strategy, and we will produce at least six fully electric BMW X models here by 2030. That means: The ‘Home of the X’ is also becoming the ‘Home of the Battery Electric Vehicle’,” said Zipse on Wednesday. “In addition, we can showcase BMW Group’s ‘local for local’ principle: Our newly developed sixth generation battery cells, which were specifically designed for the next generation electric vehicles, will be sourced here in South Carolina – where X goes electric.”

Envision AESC Battery Cell Plant in South Carolina to Supply Plant Spartanburg

In line with the principle of "local for local,” the BMW Group aims to purchase battery cells for its electric vehicles where production takes place. The company has found a partner in Envision AESC, which will build a new battery cell factory in South Carolina, to supply Plant Spartanburg. Envision will produce newly developed round lithium-ion battery cells, which were specifically designed for the sixth generation of BMW eDrive technology, and will be used in the next generation electric vehicles. The annual capacity of the battery cell factory will be up to 30 GWh.

The new battery format will increase energy density by more than 20 percent, improve charging speed by up to 30 percent and enhance range by up to
30 percent. At the same time, CO₂ emissions from cell production will be reduced by up to 60 percent through the partial use of secondary lithium, cobalt and nickel material, as well as renewable energy for production. 

The cooperation with Envision AESC is an important step in the BMW Group's plan to strengthen its regional supply chains. The expansion of electric vehicle production in combination with a local battery cell factory will lead to the creation of new supply chains, new networks for sub-suppliers, and new jobs throughout the entire region.

BMW Group has already announced that four additional battery cell factories will be built in Europe and China to meet its demand for next generation battery cells. The cell factories are being built by partners and will each have an annual capacity of up to 20 GWh.

Increased Investment and Expanded Manufacturing Capacity in SC

Of the new $1.7 billion investment announced today, $700 million will be used to build a new high-voltage BMW battery assembly center in Woodruff, SC, near Plant Spartanburg. The new facility will encompass over 1 million sq. ft., and produce next generation batteries for fully electric vehicles. Around 300 new jobs will be created on site.  

Plant Spartanburg currently produces lithium-ion battery modules for the two plug-in hybrid electric vehicles built at the plant, the BMW X3 xDrive30e (fuel consumption combined: 2.6-2.0 l/100 km WLTP; power consumption combined: 20.5-18.9 kWh/100 km WLTP, CO₂ emissions combined: 59-45 g/km WLTP) and BMW X5 xDrive45e (fuel consumption in l/100 km combined: 1.7-1.2 WLTP; power consumption in kWh/100 km combined: 27.7-24.3 WLTP; CO₂ emissions in g/km combined: 39-27 WLTP.). In 2021, nearly 70,000 electrified BMWs were built on site. The site in Woodruff will also leverage the experience and expertise developed in Plant Spartanburg’s existing operations at the new facility.

“BMW’s sustained and impactful presence in South Carolina demonstrates the power of partnership and shared commitment to our state’s automotive industry success,” said Governor McMaster. “With today’s announcement of a $1 billion expansion to Plant Spartanburg for manufacturing electric vehicles as well as $700 million for a new plant in Woodruff to assemble battery units, the road to the future is here. And I applaud BMW on helping lead the way.”

BMW Group Plant Spartanburg

Plant Spartanburg was established 30 years ago and began producing vehicles two years later. Since then, the plant has become the global center of competence for BMW Sports Activity Vehicles and a critical component of the company’s global production network. The plant currently represents an investment of nearly $12 billion, employs more than 11,000, and has an annual capacity of up to 450,000 vehicles. To date more than six million BMW vehicles have been built in the U.S. – for the U.S. and global markets. Based on this strength, BMW has been the largest automotive exporter from the U.S. by value for the past eight years.

Plant Spartanburg currently produces 11 models including the BMW X3, X4, X5, X6 and X7 Sports Activity Vehicles, four BMW M models and two plug-in hybrid electric models. Production of the all-new hybrid-electric BMW XM (fuel consumption in l/100 km combined: 1.6-1.5 WLTP; power consumption in kWh/100 km combined: 30.1-28.9 WLTP; CO2 emissions in g/km combined: 36-33 WLTP. Preliminary figures that have not yet been officially confirmed.) will begin later this year.

The plant is supported by more than 300 suppliers in the U.S., including over 40 direct tier 1 suppliers in South Carolina alone.

“This is a very important step for Plant Spartanburg as we continue our legacy of producing high-quality vehicles, and build on the success of the last 30 years,” said Robert Engelhorn, President and CEO, BMW Manufacturing Co. “With this latest investment, we futureproof our operations and prepare the plant for electrification and new technologies, ensuring both the long-term success of our company and our position as an attractive and viable employer in the state of South Carolina.”

Ongoing Commitment in the U.S.

In addition to sales and marketing operations, the BMW Group footprint in the U.S. consists of nearly 30 locations in 12 different states, including an advanced design studio, a technology research and development center, and a venture capital fund in California, BMW Group Financial Services, and BMW Manufacturing Corporation, which operates Plant Spartanburg in South Carolina. The BMW Group dealer network consists of nearly 650 independently owned BMW, MINI, Rolls-Royce and BMW Motorrad dealers nationwide. Taken together, the BMW Group’s operatons in the U.S. directly and indirectly provide and support more than 120,000 jobs in the U.S., and has contributed $43.3 billion to the U.S. economy.

“Technology Openness” and Customer Focused Flexibility

BMW Group is clearly focused on a sustainable future and shares common ambition in the U.S. with regard to climate goals and the reduction of greenhouse gas emissions. At the same time, the company is following a path of “technology openness” to offer a choice of fully electric, plug-in hybrid electric, and highly-efficient internal combustion options to its customers in meeting their diverse needs in vastly different geographies across the nation. BMW Group is committed to fulfilling its goal of making a minimum of 50% of its global sales battery electric vehicles by 2030.

360-Degree Approach

BMW Group has also set an initial target to reduce CO₂ emissions by 40% per vehicle by 2030. As BMW Group works towards the goal of climate neutrality, the company is focused on the reduction of CO₂ emissions throughout a vehicle’s entire life cycle. 

• Design and Engineering: Beyond simply electrifying its product portfolio, BMW Group begins the design and engineering phase of vehicle development with a ‘secondary first’ approach, so that currently on average nearly 30 percent of materials used in BMW Group vehicles are recycled or reused. In the longer term, the “secondary first” approach aims to increase this figure to 50 percent.
• Supply Chain and Procurement: BMW Group has been actively involved for many years in initiatives to develop standards for responsible raw material extraction and promote compliance with environmental and social standards for raw material extraction through certification of mines. The cobalt and lithium used as raw materials for the new generation of BMW battery cells will be sourced from certified mines which allows the company retains full transparency over extraction methods and ensures responsible mining.
• Vehicle Production: BMW Group’s global production network also relies on renewable energy such as solar, wind, and hydroelectric power in the manufacturing phase of its vehicles. All of the company’s production sites have been net CO₂ neutral by offsets since 2021.
• Vehicle Use Phase: BMW Group is also working to ensure that the electricity generated to charge battery electric vehicles is done so sustainably. For example, partnerships with dairy farms in California reduce greenhouse gas emissions by capturing methane gas and transforming it into renewable energy, which is exported to the power grid. The company also operates a pilot program called ChargeForward in the San Francisco Bay Area which makes it possible for owners to charge their vehicles with as much solar energy as possible.
• Vehicle Recycling & Post-Life:From the start BMW Group vehicles are designed with recycling in mind, thereby improving the possibility for components to be recycled or reused. The company has already demonstrated the ability to recover more than 90% of the material from high-voltage batteries and has approximately 3,000 collection points worldwide for the recycling of end-of-life vehicles.

As the BMW Group continues towards an electric future, the company is looking beyond the vehicles themselves to ensure that it delivers sustainable solutions across the value chain and throughout the entire lifecycle of the vehicle. In the U.S. BMW currently offers two fully electric vehicles including the BMW iX Sports Activity Vehicle and the BMW i4 Gran Coupe. The fully electric
BMW i7 Sedan (power consumption in kWh/100 km combined: 19.6-18.4 WLTP) will come to market later this year and BMW will make a significant step forward. For more information about the BMW Group’s focus on sustainability and unique approach to electrification, please visit: https://www.bmwgroup.com/en/sustainability.html

_{If you have any questions, please contact:}

_{BMW Group Corporate Communications}

_{Eckhard Wannieck, Head of Corporate, Finance and Sales Communications
E-Mail: Eckhard.Wannieck@bmwgroup.com, Tel.: +49 (0) 151 601 28042}

_{Sandra Schillmöller, Communications Purchasing, Supplier Network, Sustainability
Email: Sandra.Schillmoeller@bmwgroup.com, Telephone: +49-89-382-12225}

_{Bernhard Ederer, BMW Group Innovation Communications
Email: Bernhard.Ederer@bmwgroup.com , Tel.: +49 (0) 176 601 28556}

_{Martina Hatzel, Communications Production Network BMW Group
E-Mail: Martina.Hatzel@bmwgroup.com, Tel.: +49 (0) 151 601 11966}

_{For questions regarding Envision AESC please contact:}

_{Lauren Flanagan, Senior Director International Government Relations & Communications, Envision Group
E-Mail: lauren.flanagan@envision-energy.com, Tel. +44 7379 340 101}