BMW GROUP LOCALISES SUPPLY CHAINS AND EXPANDS PORTFOLIO WITH SAMSUNG SDI AND LG FOR BATTERY CELLS FROM EUROPE AND THE US

The BMW Group applies the “local for local” principle throughout its global supplier network, purchasing components close to where vehicle production takes place wherever possible. Targeted localisation of supply chains strengthens value creation in the key strategic regions of Europe, Asia and North America, reduces transport distances and increases supply security. A globally diversified supplier network also supports resilience and flexibility. 

Further localisation of battery cell production: Samsung SDI in Europe and LG Energy Solution in the US

The high-voltage battery plays a key role in the global supplier and production network. As a core component of the electric vehicle, it influences essential properties, such as range and charging performance. The BMW Group sources the cells for its high-voltage batteries from world-leading manufacturers, combining regional supply chains with a globally diversified supplier network. The BMW Group has now contracted additional cell suppliers for its sixth-generation (Gen6) high-voltage batteries: Samsung SDI in Europe and LG Energy Solution in the US. These two battery cell manufacturers will supply the BMW Group from their established plants in the respective regions from the late 2020s onwards. “Local for Local” combines regional value creation with a global network of leading technology partners. In this way, the BMW Group is relying on a broad supplier portfolio with localised cell production – in close geographical proximity to its high-voltage battery and vehicle production facilities.

Global purchasing strategy enhances resilience and competitiveness

With the latest nominations, the BMW Group will source battery cells produced in Europe from CATL, EVE Energy and Samsung SDI going forward. LG Energy Solution will also supply the BMW Group in the US in the future. "Our global partner network with leading cell manufacturers ensures that we have a resilient, flexible and competitive battery cell supply,” says Hendrik Lang, Head of Purchasing and Quality of High-Voltage Batteries at BMW AG. The “local for local” principle extends from the supplier network to the assembly of Gen6 high-voltage batteries, which takes place at five new production facilities worldwide that the BMW Group has built close to its vehicle plants: Irlbach-Straßkirchen (Lower Bavaria), Debrecen (Hungary), Shenyang (China), Woodruff (USA) and San Luis Potosí (Mexico). This strengthens regional infrastructure and existing facilities and helps secure jobs. The distances between suppliers, battery and vehicle plants remain short.

Supply chain localisation: Time and partnerships as key success factors

Competitive localisation of industrial value creation is a highly complex process, especially in the field of battery cell production. It demands significant investment and the development of effective supply chains with global technology leaders – as well as their willingness to establish operations locally. The BMW Group aims for long-term development of comprehensive regional battery ecosystems. This requires both attractive local conditions and feasible political regulations for the necessary industrialization periods.

Strong in-house expertise: Battery Cell Competence Centers in Bavaria

In addition to its diversified supplier network, the BMW Group also has comprehensive in-house expertise in the development, production and recycling of battery cells. “Our competence centers enable us to actively shape technological developments and meet our partners on an equal footing,” explains Lang. At the Battery Cell Competence Center (BCCC) in Munich, the BMW Group is exploring new cell technologies for future high-voltage batteries. The Cell Manufacturing Competence Center (CMCC) in Parsdorf examines how these battery cells can be produced in the highest quality and with maximum resource efficiency. Near-series battery cells are also manufactured and tested here. At the new Cell Recycling Competence Center (CRCC) in Salching, valuable raw materials are recovered using the innovative direct recycling concept developed by the BMW Group and reintegrated into the production process. While the Competence Center will be built and operated by Encory GmbH, the intellectual property for the recycling method is owned by the BMW Group.