Munich/Zagreb. The BMW Group and the Croatian University of Zagreb’s Regional Centre of Excellence for Robotic Technology (CRTA) continue to advance joint research in battery cell production. The “Insight” research project will develop and implement practical AI models to optimise battery cell production at the BMW Group. The research project covers the entire battery cell value chain: from electrode production to end-of-line testing and in-house developed direct recycling.

How the research project saves raw materials, costs and time

At the Battery Cell Competence Centre (BCCC) in Munich, the BMW Group is developing battery cells for future generations of high-voltage batteries. As part of this process, numerous test series are conducted, which by their very nature require significant time and material investment. At the same time, these tests tie up manufacturing equipment and laboratory capacity. This is where the “Insight” research project comes in: Its artificial intelligence network uses existing test data, as well as real-time data from ongoing production, to accurately predict battery cell process parameters and performance data. As a result, the duration and number of test series can be significantly reduced, while maintaining or improving quality. In this way, the newly developed AI systems reduce the material and time required in individual process steps by more than 50 percent.

Other cell production use cases

The research project’s prediction models not only reduce the number of test series but also support final approval of battery cells. Following initial charging at the end of production, the cells must be stored for a defined period at precisely specified temperatures before they can be installed in a battery housing. This phase, also referred to as the “quarantine”, requires corresponding storage capacity. However, the research project’s AI systems are able to conduct a full analysis of the battery cells in advance, potentially eliminating this process step in the future.

Research collaboration combines theory and practice

Since the project was launched in 2024, the BMW Group and the University of Zagreb have been developing joint solutions using artificial intelligence to improve battery cell production. To this end, doctoral candidates and students at the University of Zagreb are collating and structuring available production data and using it to create AI models that can identify specific patterns. These AI models then make predictions that further optimise production performance, quality and costs. “We are working on scaling the newly developed AI models from the prototype environment,” explains Christian Siedelhofer, head of Technology Development Lithium-Ion Battery Cells at the BMW Group. One option would be to enable cell manufacturers. “We are also examining to what extent these models are suitable for additional use cases within our production network.”

Win-win through knowledge sharing

The University of Zagreb contributes expertise in mechanical engineering, electrical engineering and computer science to the project. Ongoing knowledge sharing benefits both partners: The University of Zagreb provides the BMW Group with access to the latest research findings, while its doctoral candidates and students have the opportunity to apply their theoretical knowledge in practice.

Development of young talent

Another aspect of the cooperation is the development of young talent. “Our joint project gets doctoral candidates and students interested in AI and battery cells and the exciting work we do at our Battery Cell Competence Centres,” says Stefan Kerscher, head of Technology Development Battery Cells at the BMW Group. “We are delighted when young talents decide to embark on a career with our company.” The cooperation offers students intensive mentoring and the opportunity to expand their professional network across the industry, enhancing their attractiveness on the job market and opening up outstanding career opportunities. The cooperation between the BMW Group and the University of Zagreb strengthens the innovation capability and competitiveness of both partners.

Battery cell expertise along the entire value chain

The BMW Group consolidates its battery cell know-how at its Competence Centres in Munich, Parsdorf and Salching. The Battery Cell Competence Centre (BCCC) in Munich houses research and development for the battery cells of the future. The best battery concept from the BCCC will be produced under near-series conditions at the Cell Manufacturing Competence Centre (CMCC) in Parsdorf. Close cross-divisional collaboration between Development, Purchasing and Production integrates product and process in a unique way. In addition to producing sample cells, the BMW Group is also focusing its efforts on the reuse of materials. As part of this process, the company has put into service a Cell Recycling Competence Centre (CRCC) in Salching, Lower Bavaria, together with Encory GmbH, which will implement the innovative direct recycling concept. The intellectual property for the recycling method is owned by the BMW Group.

Munich/Salching. The new Cell Recycling Competence Center (CRCC) in Salching in Lower Bavaria has now been officially commissioned – marking a major step forward in implementing innovative direct recycling as a joint project between the BMW Group and Encory GmbH. For construction and operation of the new Competence Center, the BMW Group and Encory are relying on regional partners.

Innovative direct recycling enables reuse of battery raw materials

Direct recycling allows residual materials from battery cell production, including complete battery cells, to be mechanically dismantled. The raw materials are not entirely reverted to their original state, but are instead “directly” fed back into the cell production cycle. This direct recycling methodology, developed by experts from the BMW Group, therefore eliminates the conventional, energy-intensive chemical or thermal processing previously required. At the new CRCC, direct recycling will be scaled up and introduced in stages until, once fully operational, the annual volume of battery cell material recycled will be in the mid-double-digit tonne range. Going forward, the recovered raw materials will be directly reused in pilot production of battery cells at the company’s own Cell Manufacturing Competence Center (CMCC) in Parsdorf.

Direct recycling: A process for the future

“Our direct recycling process puts us at the forefront of the industry,” explains Markus Fallböhmer, SVP of Battery Production at BMW AG. “This technology has tremendous potential to further optimise battery cell production.” It is also conceivable that, for the first time, cell manufacturers could be enabled to use direct recycling in series production.

Joint venture runs Competence Center – IP remains with BMW Group

An existing hall in Salching in Lower Bavaria (Straubing-Bogen district) will be used for the new Competence Center. In addition to the production area and warehouse space of around 2,100 m², the building also offers just under 350 m² of offices and break rooms, as well as photovoltaic systems on the roof. While the Competence Center will be built and operated by Encory GmbH, the intellectual property for the recycling method is fully owned by the BMW Group. As a joint venture between the BMW Group and the Interzero Group, Encory will develop and implement logistics and consulting solutions, including for recovery, recycling and reconditioning of vehicle components. Both partners hold a 50-percent stake in the company. The new Competence Center will employ about 20 people.

Strong partners from the region

With the exception of one Swiss company, only German firms were contracted for the construction and operation of the Competence Center. Nearly half of these companies are located within a 100-kilometer radius of Salching.

Optimal location for new Competence Center in Bavaria

The BMW Group consolidates its battery cell expertise at its Competence Centers in Munich, Parsdorf and Salching. The Battery Cell Competence Center (BCCC) in the north of Munich offers state-of-the-art labs and research facilities for developing the battery cells for next-generation high-voltage batteries and producing them in small quantities. The best battery cell from the BCCC will be scaled up for series processes on a pilot line at the Cell Manufacturing Competence Center (CMCC) in Parsdorf. Recycling of surplus material from pilot production in Parsdorf will take place at the new Cell Recycling Competence Center (CRCC) in Salching. The recovered raw materials will then be reused in cell production, ensuring short distances between all Competence Centers and preventing valuable raw materials from being lost. Following on from the BCCC and CMCC, the CRCC thus represents the next step in the BMW Group’s battery cell strategy on the road to the circular economy.

Circular economy at the BMW Group

The BMW Group views the circular economy as one of the key issues in shaping more resource-efficient mobility. Its approach is aimed at finding the best ways to keep materials in the cycle – ensuring that resources are not lost, but retain their value for long-term use. The BMW Group applies the principles of Re:Think, Re:Duce, Re:Use and Re:Cycle. From vehicle design and production, to recycling and reuse, everything is geared towards ensuring that vehicles can serve as a source of raw vehicles at the end of their use phase. The BMW Group is taking steps to increase the percentage of recycled materials. It returns selected production residues to the material supplier or material processor, enabling their recovery and reintroduction into a new manufacturing process. In this way, recycled and reused materials are already making their way into BMW Group vehicles today. The circular economy requires holistic thinking – from product design, all the way through to vehicle recycling. 

Munich/Parsdorf. With the Neue Klasse, the BMW Group is ushering in a new era of pure electric driving, starting series production end of 2025. The high-voltage battery is a key component in any electric vehicle. Before large-scale series production can begin, manufacturing processes must be developed and pre-series batteries put through their paces. This takes place at the BMW Group’s pilot plants for high-voltage batteries in Parsdorf and Hallbergmoos and at the Research and Innovation Centre (FIZ) in Munich. “Our pilot plants for high-voltage batteries are strengthening Germany’s capacity for innovation,” says Milan Nedeljković, Member of the Board of Management of BMW AG responsible for Production. “They are laying the groundwork for the new series plants worldwide, ensuring a smooth ramp-up of high-voltage battery production.” To produce high-voltage batteries for the sixth generation of BMW eDrive (Gen6), the company is establishing five assembly sites across three continents: in Irlbach-Straßkirchen (Lower Bavaria), Debrecen (Hungary), Shenyang (China), San Luis Potosí (Mexico) and Woodruff (USA).

Quality is key: Consistent zero-defect approach
For the in-house developed Gen6 high-voltage battery, the BMW Group is implementing intelligent, state-of-the-art production processes using the latest technologies. “For production of our high-voltage batteries, we are pursuing a consistent zero-defect approach,” explains Markus Fallböhmer, head of Battery Production at BMW AG. “Highly intelligent, AI-supported quality checks are integrated into the production process to help us achieve this.” Because quality is key: In bodies for the Neue Klasse, the high-voltage battery serves as a structural component (“pack to open body”). The new cylindrical round cells are integrated directly into the high-voltage battery (“cell to pack”). With its innovative production processes, BMW Group’s pilot and series plants are setting new industry standards for battery production. Examples include, among the consistent zero-defect approach, the use of digital production twins for tasks such as employee training, as well as leveraging expanded AI databases to optimise supply and production logistics. All production steps undergo seamless in-line monitoring with comprehensive data storage, enabling maximum process stability and continuous data-based optimisation.

Pilot plants up close: Parsdorf, Hallbergmoos and Munich (FIZ)
The largest pilot plant for Gen6 high-voltage batteries is located in Parsdorf, where over 350 employees have been building initial prototypes since 2023. Since mid-2024, some of the high-voltage batteries produced there have already been delivered to the vehicle plant in Debrecen, Hungary, where they are installed in test vehicles for the Neue Klasse. A pre-series plant for high-voltage batteries is also located near Munich Airport. Since summer 2024, the site in Hallbergmoos has been developing manufacturing technologies for high-voltage battery assembly. Around 200 employees are working at this small-scale battery factory. The Hallbergmoos site serves as a model for the series production at Plant Woodruff near Spartanburg, South Carolina, US. At the Munich Research and Innovation Centre (FIZ), another 200 employees are manufacturing and testing prototypes and smaller module variants of the high-voltage battery. Several floors of the recently opened Aeroacoustics and E-drive Centre (AEZ) are dedicated to this work.

Series launch of five battery plants in under two years
The systems and processes developed at the Bavarian pilot plants will be rolled out to the series plants worldwide. Within less than two years, series production will ramp up at five locations across three continents. In line with its "local-for-local" principle, the BMW Group has positioned its Gen6 high-voltage battery assembly sites as close as possible to its vehicle plants. This approach safeguards production, even in the event of unforeseen political and economic developments. It will also strengthen existing production sites, while preserving and creating jobs. Series production of the BMW iX3, the first model of the Neue Klasse, will get underway at Plant Debrecen late this year, alongside high-voltage battery manufacturing at the same site. The launch in Debrecen will be followed by the battery assembly plants in Shenyang, Irlbach-Straßkirchen, Woodruff and San Luis Potosí.

How the BMW Group builds Gen6 high-voltage batteries
The BMW Group sources battery cells for its high-voltage batteries from leading cell manufacturers, who produce the cells to the company's specifications. The highest technical standards apply. Upon receipt of goods, additional measurements – such as voltage checks – are carried out. Next comes cell clustering, where the battery cells are connected to coolants. This step ensures optimal insulation and cooling of the cells. The cell clusters and cell contact system are then laser-cleaned and welded with pinpoint precision. The in-line inspection continuously monitors each weld seam in real time. An innovative foaming process follows, ensuring that all elements are protected as a mechanical unit. The foam thus guarantees the safety, stability and durability of the high-voltage battery. The housing is then closed, sealed and riveted. In the final assembly step, the Energy Master – the central control unit – is installed onto the high-voltage battery. A permanently elastic sealing adhesive is applied to ensure a reliable seal. Finally, each high-voltage battery undergoes a 100% end-of-line inspection to ensure quality, safety and function.


If you have any questions, please contact:

Corporate Communications

Christian Marxt
Press spokesperson, Production Network, Powertrain and High-Voltage Batteries
Cell phone: +49-151-601-79158
Email: Christian.Marxt@bmwgroup.com

Sandra Schillmöller
Head of Communications Production Network BMW Group
Cell phone: +49-151-601-12225
Email: Sandra.Schillmoeller@bmwgroup.com

Media website: https://newsroom.bmwgroup.com/global/en
Email: presse@bmwgroup.com

The BMW Group is bringing large-format, pure ASSB cells from Solid Power to its test vehicle, a BMW i7, which is being operated in the Munich area. The potential benefits of ASSB technology: higher energy density in a very compact storage system compared to current technologies.

Since 2022, the BMW Group and Solid Power, Inc. (Nasdaq: SLDP) have intensified their activities for the development of all-solid-state battery (ASSB) technology through their technology transfer agreement.

The BMW Group and Solid Power believe in the potential of genuine ASSB technology. With a higher energy density compared to current battery technologies, ASSB batteries have the potential to achieve longer ranges in vehicles without the disadvantages with regard to the weight of the overall storage system.

“Solid Power is extremely proud that our partnership with BMW has resulted in the first demonstration of truly all-solid-state battery cells in a vehicle,” said John Van Scoter, President and Chief Executive Officer of Solid Power.  “We believe in the promise of ASSB’s and continue to drive innovation of our sulfide electrolyte in support of that future for EV’s.”

Martin Schuster, Vice President Battery Cell and Cell Module at the BMW Group, says: “Our BMW i7 ASSB test vehicle on the road is a perfect example of the BMW Group's technology-open mindset. We are continuously advancing the development of new battery cell technologies and are constantly expanding our know-how with valuable partners such as Solid Power. ”

The concept battery integrated in the BMW i7 test vehicle combines proven Gen5 construction principles (prismatic cells in modules) with new, innovative module concepts for integrating ASSB cells from Solid Power.

The management of cell expansion will be investigated here. In addition: How is the operating pressure controlled and how to adjust the temperature conditions.

The use of solid power cells with sulfide-based electrolytes and their complete integration into a battery pack will provide the BMW Group with further important findings in the test program over the coming months.

The innovative cells were developed and manufactured by Solid Power in collaboration with experts from the BMW Group. Further development steps are required to implement ASSB technology in a competitive overall storage system.

The BMW Group and Solid Power have been cooperating since 2016 through an extended “Joint Development Agreement”, which was supported by BMW Group's investment in Solid Power in May 2021 as part of a financing round.

At the end of 2022, BMW and Solid Power agreed to further deepen their partnership. BMW will operate a solid cell prototype line at the CMCC (Cell Manufacturing Competence Center) in Parsdorf on the basis of a research and development license and using the experience and expertise of Solid Power.

Since 2008, the BMW Group has been steadily expanding its expertise in the area of battery cell technology. Since 2019, this know-how has been bundled at the BMW Group's Battery Cell Competence Center (BCCC) in Munich. The BCCC covers the entire value chain, from research and development to battery cell design and production capability.

In order to be able to implement innovations in battery cell technology quickly and efficiently, the BMW Group cooperates in a network of around 300 partners, including established companies, start-ups and universities.

The cooperation with Solid Power underlines the BMW Group's battery strategy -to further develop innovative battery technologies on equal footing with leading partners in the industry. This strategically strong position in the value chain ensures the BMW Group access to all new and innovative battery cell research worldwide.

Munich/Landshut. The BMW Group is presenting its next leap forward in the field of electric drive technology – and in the process ushering in a new era of all-electric driving. At the Tech Days event in Landshut, the company has provided some initial insights into the development and production of high-voltage batteries and electric drive systems using the sixth generation of BMW eDrive technology. Every fully electric Neue Klasse vehicle will enjoy the benefits. The first Neue Klasse model will go into series production later this year at Plant Debrecen in Hungary. Below is an overview of the technology highlights:

• The Energy Master intelligent central control unit on the high-voltage battery – developed by the BMW Group and produced at Plant Landshut.
• A new high-voltage battery concept that, together with the BMW cylindrical cell, promises to bring about a technological quantum leap – including significant improvements in energy density, charging speed and range.
• The BMW Group also demonstrates its technology-openness with electric drive systems – through the use of different electric motor types: EESM and ASM.
• A modular approach to electric motor production gives the BMW Group an exceptional degree of flexibility.
• The BMW Group pools together expertise from the entire electric mobility value chain in Bavaria and Austria – from development, via purchasing and production, to recycling.
• The BMW Group demonstrates both technology-openness and full expertise across all areas of electric mobility.

Adopting a technology-open approach while setting the pace in electric mobility

“For the BMW Group, electric mobility is the future and a key area of growth. We are leading the way with this drivetrain technology. At the same time, we are deliberately taking a technology-open approach, recognizing that mobility needs vary between different regions of the world,” explains Dr Joachim Post, Member of the Board of Management of BMW AG, Purchasing and Supplier Network. “We want to offer our customers the best drive concept for every need. It is possible to do both: offer the best drive technology for every need and be at the forefront of electric mobility.”

Slimmer, faster, further: the high-voltage batteries for Gen6

With the new sixth-generation BMW eDrive technology (Gen6 for short), the BMW Group is making a technological quantum leap. Improvements on the product side include a 30% faster charging speed and 30% increase in range, with certain models achieving even higher figures. Added to which, the Gen6 high-voltage battery concept benefits from the new 800V technology. Gen6 will make its debut this year in the Neue Klasse and subsequently be used to drive models across the BMW Group’s fully electric product range. The concept for the Gen6 high-voltage batteries is fundamentally new and will find applications in all vehicle segments – right up to the high-performance models from BMW M GmbH. Its new, even slimmer design allows the high-voltage battery to be integrated into a spread of different models, regardless of vehicle height. The high-voltage battery takes on the role of a structural component in the bodies of the Neue Klasse models (“pack-to-open-body”), and the new cylindrical cells will be integrated directly into the high-voltage battery (“cell-to-pack”). The new BMW cylindrical cell has a 20% greater energy density than its predecessor, the Gen5 prismatic battery cell. And charging in both directions will be possible: the BMW Group has confirmed bidirectional charging as an option for Gen6.

Highly intelligent central control unit: the BMW Energy Master

All of the elements that enable this technological leap forward come together in the BMW Energy Master. This central control unit is positioned on the high-voltage battery and provides the interface for high- and low-voltage power supply and for data from the high-voltage battery. It also controls the power supply for the electric motor and vehicle electrical system and ensures the safe and intelligent operation of the high-voltage battery. The BMW Group has filed a whole series of new patent applications for the vehicle electrical system, including its electronic fuses. Both the hardware and software of the Energy Master were developed fully in-house at the BMW Group. This ensures technological developments and updates for vehicles can be implemented independently and in real time via Remote Software Upgrades, providing a particular benefit for customers.

“Local for local” approach for high-voltage battery assembly and supplier network

The high-voltage batteries for the Neue Klasse are assembled in five new production facilities that the BMW Group has located close to its vehicle plants as part of a “local for local” approach. For example, cutting-edge assembly locations for Gen6 high-voltage batteries are taking shape in Irlbach-Straßkirchen (Lower Bavaria), Debrecen (Hungary), Shenyang (China), San Luis Potosí (Mexico) and Woodruff, near Spartanburg (USA). This approach safeguards production even in the event of unforeseen political and economic events. In addition, the existing locations are being strengthened, with jobs both secured and created. The “local for local” principle continues in the supplier network for battery cells: in order to cover the demand for Gen6, the BMW Group has reached contractual agreements for five battery cell factories – spread across Europe, China and the USA – with various partners.

“Cell-to-pack” and “pack-to-open-body”

Production of the Gen6 high-voltage batteries follows the “cell-to-pack” and “pack-to-open-body” principles. “Cell-to-pack” involves positioning the cylindrical cells – manufactured by the suppliers according to BMW Group specifications – directly in the housing of the high-voltage battery, without the intermediate step of a module being produced. “Pack-to-open-body” refers to the high-voltage battery’s new role as a structural component in the vehicle architecture. Numerous innovations patented by the BMW Group can be found here.

Know-how from Bavaria and Austria – in demand around the world

Before series production of the high-voltage batteries gets underway worldwide, the production processes will be developed and pre-series batteries subjected to thorough testing. This will happen at the BMW Group pilot plants for high-voltage batteries in Parsdorf, Hallbergmoos and Munich. The new series production plants around the world will then be ready. The product and process expertise is centred in Bavaria. Production of the Energy Master will take place at Plant Landshut, which will then supply all the high-voltage battery assembly plants around the world. There, the highly intelligent control unit will be installed on the high-voltage battery. The electric motor with sixth-generation BMW eDrive technology is produced at Plant Steyr in Austria, which is also home to a development centre for electric drive systems and thermal management.

Production of the Energy Master at BMW Group Plant Landshut  

A state-of-the-art production system for the BMW Energy Master is taking shape at Plant Landshut. The plant is currently producing the highly complex control unit in pre-series. Series production on the first production line will begin in August 2025, with a further expansion stage to follow in mid-2026. This is the first time the development and production of this central control unit has taken place in-house at the BMW Group. “As the company’s largest in-house component manufacturer, Landshut plays an important role for the Neue Klasse,” says Dr Joachim Post. “The plant is an innovation hub and a driver of transformation.” Around 200 people will be employed in the Energy Master production area at Landshut when production begins, rising to as many as 700 people as it ramps up further. The BMW Group has channelled investment in the high hundreds of millions of euros into the expansion of electric mobility at Plant Landshut since 2020, strengthening both the production facility itself and Germany’s status as an industrial powerhouse for the long term. The modular manufacturing system used to produce the Energy Master was also designed fully in-house by the BMW Group. It is supplied with subcomponents by a supply chain set up by the BMW Group. This extends to the n-tier supply chain for supply-critical components such as semiconductors. The benefits of this set-up can be seen in terms of both costs and supply security. The scalable production system enables the company to respond quickly and flexibly to market requirements. The high degree of automation, involving up to 400 robots in the final expansion stage, maximises efficiency. Comprehensive in-process monitoring, which includes the use of AI-based camera systems, and 100-per-cent end-of-line system checks in a clean-room environment ensure optimum quality.

Different recycling processes within the value chain

As electric mobility ramps up, there is an increasing focus on recycling of high-voltage batteries at the end of their lifecycle. Under a long-term partnership with SK tes – a leading provider of innovative technology lifecycle solutions – cobalt, nickel and lithium from end-of-life batteries are recovered from the BMW Group and integrated into the supply chain for the manufacture of new batteries. This closed-loop approach increases the efficiency and resilience of the BMW Group as part of a circular economy. The BMW Group will follow a similar path in the USA, Mexico and Canada up to 2026 with a separate partnership.

Innovative direct recycling at the BMW Group

The BMW Group is also exploring other recycling options in the value creation process. One example of this is the direct recycling method developed in-house. The BMW Group is working with its joint venture Encory to set up a competence centre for battery cell recycling in Lower Bavaria, where the company will put its direct recycling ideas into practice. This innovative process will enable residual materials from battery cell production and whole battery cells to be mechanically broken down into their valuable constituent components. The raw materials obtained in this way will be re-used directly in the pilot production process for battery cells at the company’s competence centres.

Technology-open approach for electric mobility: the new e-drive system of Gen6

The BMW Group has retained the principle of an electrically excited synchronous motor (EESM) for its Gen6 power unit. On this type of synchronous motor, the magnetic field in the rotor is generated by windings fed with direct current rather than permanent magnets. In this way, the strength of the rotor’s magnetic field can be optimally adjusted to the prevailing load conditions. This results in both excellent levels of efficiency at customer-relevant operating points and constant power output at high rotational speeds. As with the Gen5 version, the synchronous motor will be positioned above the rear axle and feature a compact housing incorporating the electric drive unit, power electronics and transmission. Many of the motor’s technical details were created with the help of patented expertise, with the rotor alone accounting for more than ten patent applications.

Neue Klasse additionally incorporates ASM technology

The Gen6 powertrain employs a second, additional electric motor technology in the form of the asynchronous motor (ASM). Here, instead of being generated by permanent magnets (PSM) or electrical excitation (EESM), the rotor’s magnetic field is induced by the stator. On this type of motor, the rotor takes the form of a metal cage. The asynchronous motor offers the advantage of a more compact design and superior cost efficiency. The ASM motor variants will be fitted at the front axle of Neue Klasse cars with BMW xDrive.

Extensive improvements to EESM technology

Besides the addition of ASM technology, the EESM technology has also undergone a major upgrade for Gen6: rotor, stator and inverter have all been fully designed for the new 800V architecture of the Gen6 tech in order to maximise drive system performance and efficiency. This has been further helped by a complete redesign of the oil and water cooling systems. In addition to this, the experts from the BMW Group have also succeeded in improving the electric motor and central housing in terms of their weight and rigidity too. The transmission still uses a two-stage helical design, but has been further optimised by enhancements to its geometry and cooling, lower friction levels and more pleasant acoustics. The electrically excited synchronous motor’s “brain”, the inverter, now features 800V technology along with silicon carbide (SiC) semiconductors to boost efficiency. The inverter is completely integrated into the electric motor’s housing. Its task is to convert the DC power supply from the high-voltage battery to AC for use in the electric motor. The inverter was developed in-house by the BMW Group and is produced at Plant Steyr in Austria.

Lower weight, costs and energy losses – greater efficiency in the vehicle

The results obtained from intelligently incorporating new technologies into the electric powertrain while consistently enhancing existing systems make impressive reading. When compared to a Gen5 xDrive model, a future Neue Klasse model complete with EESM and ASM technology boasts the following improvements: energy losses have been reduced by 40%, costs by 20% and weight by 10%. By combining different types of electric motor, the BMW Group’s technology-open approach is therefore clearly in evidence within the field of electric mobility. In future, customers will be able to choose from models equipped with one, two, three or four electric motors to suit their individual preferences and requirements. The sixth generation BMW eDrive technology is a significant factor in the gain in overall vehicle efficiency of around 20 per cent for the Neue Klasse. This figure is based on a comparison with the current generation of all-electric vehicles from the BMW Group.

Modular concept provides crucial advantage for manufacturing electric motors

The manufacturing concept for the Gen6 electric drive system uses the principle of modular building blocks. This forms the basis for highly flexible manufacturing of various electric drive variants across the entire Neue Klasse model range. The modular "building block” concept leads to positive economies of scale and cost savings in development and production. It also has the effect of improving the scalability of production volumes. The modular approach ensures a high degree of flexibility in production, the supply networks and procurement.

The Gen6 electric drive systems: made in Steyr

Series production of the Gen6 electric drive systems will commence at BMW Group Plant Steyr in summer 2025. Pre-production already got underway at the Austrian facility in September 2024. The pre-production motors are undergoing rigorous testing and some are already being fitted in Neue Klasse test vehicles from Plant Debrecen. By 2030, the BMW Group will have invested over one billion euros at the site since the project’s launch in 2022 to expand its development and production expertise for electric drive systems. Thanks to the increase in capacity, the plant will retain its status as the BMW Group’s leading facility for drive systems. The plant has been developing and building combustion engines for the BMW and MINI brands for over 40 years. Plant Steyr’s many years of experience and high level of expertise in the field of drive systems make it the ideal site for manufacturing the Gen6 electric motors. Diesel and petrol engines continue to be manufactured there alongside the electric motors. By 2030, around half of the on-site employees should be working in electric mobility – a vital step for safeguarding the more than 4,700 jobs at the plant in the long term. In future, all key components of the innovative, highly integrated electric drive unit – i.e. the rotor, stator, transmission, inverter and housing – will be produced at Steyr. This will include manufacturing the inverters in an in-house clean room environment for the first time, thereby taking the engine plant into the realm of electrical engineering. The electric drive components will be built on two new assembly lines at Steyr.

Thermal management: complex interaction, crucial for performance
Thermal management involves highly complex interaction between various systems in an electric vehicle and is of critical importance for a host of performance parameters, including range, real-world consumption, acceleration and charging time. Thermal management is a question of constantly keeping the temperature of the electric motor, power electronics and high-voltage battery in the optimum range, while maintaining standards of passenger comfort at the same time. Efficient thermal management is important for fast charging too. Here, the battery temperature must be kept within a defined window in order to make optimum use of the available charging capacity. Unlike combustion engines, electric motors give off little heat. This means that, depending on the operating state, the battery and the passenger cell have to be not only cooled, but heated too. The Steyr site develops the thermal management systems for all electric vehicles from the BMW Group. The plant’s development centre is also responsible for the brain at the heart of the electric motor – the inverter.

BMW Group Plant Landshut – a multi-talented component manufacturer

BMW Group Plant Landshut is the BMW Group’s largest component plant anywhere in the world, supplying components to all the company’s vehicle and drive system plants. Its workforce of around 3,700 employees produces a broad spectrum of cutting-edge components for vehicles from the BMW Group. Working closely with the BMW Group’s Research and Innovation Centre (FIZ) in Munich, Plant Landshut plays a pivotal role as a hub of innovation for the automotive industry. It develops pioneering technologies and manufacturing processes that serve to maintain the company’s competitive edge. Over the course of the Neue Klasse project, the site is investing some €200 million in its light metal foundry to increase annual production capacity for the electric motor housings. The Injector Casting (ICA) process developed and patented in Landshut is a prime example of the plant’s innovative strength. This globally unique process is used to manufacture the electric motors’ highly complex aluminium housings that set new standards for lightweight design and functional integration.

In the event of enquiries please contact:

Corporate Communications

Christian Marxt

Spokesperson Production Network, Powertrain and High-voltage Batteries

Mobile: +49-151-601-79158

E-mail: Christian.Marxt@bmwgroup.com

Carolin Seidel

Spokesperson BMW Group Plant Landshut

Mobile: +49-151-601-90340

E-mail: Carolin.Seidel@bmwgroup.com

Florian Moser

Team Lead Purchasing and Supplier Network, Spokesperson Dr Joachim Post

Mobile: +49-151-601-62847

E-mail: Florian.Moser@bmwgroup.com

Bernhard Ederer

Spokesperson Drive Technology, Battery, Charging, Efficient Dynamics

Mobile: +49-176-601-28556

E-mail: Bernhard.Ederer@bmwgroup.com

Diana Schaidnagel

Spokesperson Sustainability

Mobile: +49-151-601-38407

E-mail: Diana.Schaidnagel@bmw.de

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial services. The BMW Group production network comprises over 30 production sites worldwide; the company has a global sales network in more than 140 countries.

In 2024, the BMW Group sold 2.45 million passenger vehicles and more than 210,000 motorcycles worldwide. The profit before tax in the financial year 2023 was € 17.1 billion on revenues amounting to € 155.5 billion. As of 31 December 2023, the BMW Group had a workforce of 154,950 employees.

The economic success of the BMW Group has always been based on long-term thinking and responsible action. Sustainability is a key element of the BMW Group’s corporate strategy and covers all products from the supply chain and production to the end of their useful life.

Munich. With electric mobility continuing to gather pace, recycling high-voltage batteries is increasingly under the spotlight. After successfully launching a closed-loop recycling system for the reuse of raw materials from high-voltage batteries thanks to the BMW Brilliance Automotive Joint Venture (BBA) in China in 2022, the BMW Group has now hit another milestone on its journey. On 1 November 2024, it launched a pan-European partnership with SK tes, a leading provider of innovative technology lifecycle solutions. The special recycling process recovers cobalt, nickel and lithium from used batteries before returning them to the value chain to make new batteries. This closed-loop system is set to expand to the US-Mexico-Canada region as early as 2026.

Its long-term partnership with SK tes sees the BMW Group directly involved in the practical recycling processes, allowing it to feed back valuable insights to the development departments. Moving forward, high-voltage batteries from BMW Group development, production and markets in Europe that are no longer fit for use are to be delivered to SK tes in what is the first step towards an effective and sustainable circular economy for batteries. SK tes then converts the old batteries into high-quality metals that can be reintroduced to battery production. The latter process sees the batteries mechanically shredded, during which the metals are concentrated to leave a material called black mass. The valuable materials, namely nickel, lithium and cobalt, are then recovered in a highly effective chemical process called hydrometallurgy. Among other things, these secondary raw materials will be used for the new GEN 6 drive train.

"Partnerships like this increase our efficiency in terms of the circular economy. In the closed-loop process, all partners mutually benefit from their experiences," says Jörg Lederbauer, Vice President Circular Economy, Spare Parts Supply High Voltage Battery and Electric Powertrain at BMW AG. 

The battery recycling process of SK tes has won numerous sustainability and innovation awards worldwide – from the Business Intelligence Group’s Sustainability Service of the Year to the UN Global Compact’s Apex Award.

Circular economy at the BMW Group

"The promotion of circular economy is an important strategic topic for the BMW Group. The development of recyclable products, the increase of secondary materials in our components, and the closing of loops play an equally important role," says Nadine Philipp, Vice President Sustainability Supplier Network at BMW AG. "And by the means of circular economy we are also increasing our resilience in the supply chains."

The BMW Group follows the principles of Re:Think, Re:Duce, Re:Use, and Re:Cycle in the sense of a conservation of resources when it comes to circular economy. From vehicle design and production to recycling and reuse: everything is geared towards ensuring BMW vehicles become a raw materials source for new cars once they reach the end of their useful life. One such example is the BMW Group’s Recycling and Dismantling Centre. Over a period of 30 years now, the centre has developed processes and put them into practice, making key progress in parts and materials recycling.

Munich. The BMW Group and its joint venture Encory are building a Cell Recycling Competence Centre (CRCC) for battery cells in Kirchroth, in the Straubing-Bogen district of Lower Bavaria, where it will implement a process referred to as “direct recycling”. This innovative procedure enables residual materials from battery cell production, as well as whole battery cells, to be mechanically dismantled into their valuable components. The recovered raw materials are then directly reused in pilot production of battery cells at the company’s own Battery Cell Competence Centres.

“The new Cell Recycling Competence Centre brings another element to our in-house expertise: From development and pilot production to recycling, we are creating a closed loop for battery cells,” says Markus Fallböhmer, SVP Battery Production at BMW AG, “taking advantage of the short distances between our Competence Centres in Bavaria.” The BMW Group is investing around 10 million euros in construction of the new Competence Centre. Installation work at the building is already scheduled to begin in the second half of 2025. Once completed, validation of the recycling method in near-series processes will get underway.

Innovative direct recycling recovers valuable raw materials

Battery cell raw materials – primarily lithium and cobalt, but also graphite, manganese, nickel and copper – are among the main cost factors in cell production. Responsible use of these resources is essential from both environmental and economic perspectives. “The direct recycling will help reducing the costs for our battery cell pilot line”, explains Fallböhmer. Unlike conventional methods, the main characteristic of direct recycling is that raw materials from battery cells are not reverted to their original state, but are instead fed back “directly” into the cell production cycle. This method dispenses with the previously common energy-intensive chemical or thermal processing. The recycling method was developed by BMW Group experts at the Competence Centres in Munich and Parsdorf. At the new CRCC, it will be implemented on a larger scale and, once the processes are finalised, battery cell material in the mid-double-digit tonne range can be recycled per year.

Optimal location for new Competence Centre in Bavaria

The BMW Group consolidates its battery cell expertise at its Competence Centres in Munich and Parsdorf. The Battery Cell Competence Centre (BCCC) in the north of Munich offers state-of-the-art labs and research facilities for developing the battery cells for next-generation high-voltage batteries and producing them in small quantities. The most promising battery cell from the BCCC will be scaled up for series processes on a pilot line at the Cell Manufacturing Competence Centre (CMCC) in Parsdorf. Once completed, recycling of surplus material from pilot production in Parsdorf will take place at the new Competence Centre in Kirchroth. The recovered raw materials will then be reused in cell production in Parsdorf. This ensures short distances between all Competence Centres and prevents valuable raw materials from being lost. Following on from the BCCC and CMCC, the CRCC thus represents the next step in the BMW Group’s battery cell strategy on the road to the circular economy.

Joint venture operates Competence Center, intellectual property at the BMW Group

The new CRCC, spanning an area of 2,200 m², will be integrated into the expansion of an existing building in the Kirchroth-Nord industrial park, near Straubing. Electrical energy from the discharged cells will be captured in energy storage systems within the building and used to operate the recycling systems. The energy concept will be rounded out by photovoltaic systems installed on the roof of the building. While the intellectual property for the recycling method is fully owned by the BMW Group – the Competence Centre will be built and operated by Encory GmbH. As a joint venture of the BMW Group and Interzero Group, Encory develops and implements logistics and consulting solutions in areas such as collection, recycling, and remanufacturing of vehicle components. Both partners hold a 50% stake in the company. Around 20 people will be employed in the new Competence Center.

Circular economy at the BMW Group

The BMW Group views the circular economy as one of the key issues in designing more resource-efficient vehicles. The premise is to optimize the circularity of materials. This means resources are not lost, but retain their value for long-term use. The BMW Group applies the principles of Re:Think, Re:Duce, Re:Use and Re:Cycle. From vehicle design and production, to recycling and reuse, everything is geared towards ensuring cars can serve as a source of raw materials for new vehicles at the end of their use phase. Recycling focuses, in particular, on the use of innovative methods to recover high-voltage batteries from electrified vehicles.

Munich/Parsdorf. With the publication of its first environmental impact report, the new BMW Group Competence Center for Battery Cell Manufacturing (CMCC) in Parsdorf has been awarded EMAS certification. The acronym EMAS stands for European Eco-Management and Audit Scheme, which claims to be the most stringent environmental management system in the world. The certification was presented to Bernd Wächtershäuser, Director of the CMCC in Parsdorf, on 18 November. Speaking during a visit by the Chamber of Industry and Commerce (IHK) for Munich and Upper Bavaria, Wächtershäuser said: “We are very pleased to receive this award, which underlines the fact that our processes operate on a very high level, in both economic and environmental terms.  The entire team has done an excellent job in achieving this certification.”

The CMCC in Parsdorf is where the BMW Group manufactures prototype cells of the kind that will be used in the Neue Klasse models from 2025. It is also a manifestation of the company’s pioneering role in battery cell technology. “Economic success and sustainable operations are not a contradiction,” said Manfred Gößl, Managing Director of the IHK for Munich and Upper Bavaria at the presentation of the certificate. “Quite the opposite, in fact – as is evidenced by every facility pursuing EMAS certification. The IHK would like to congratulate the BMW Group Competence Centre in Parsdorf on this milestone.”

CMCC Parsdorf: Efficient operations, and concepts for the cell cycle

The EMAS certification underlines the rigorous environmental standards that govern operations at the CMCC in Parsdorf. Its technical systems for battery cell production have been subject to an immission control approval procedure, and the site was found to meet all requirements and specifications. The CMCC is powered by non-fossil energy from 100% renewable sources. Natural gas was deliberately rejected as a source of power, and the building is instead supplied with regenerative heat thanks to state-of-the-art groundwater and air source heat pumps. Hot water for process ventilation is obtained highly efficiently, via the waste heat from various primary processes. “Pilot production focuses on reducing consumption of critical raw materials and energy, avoiding solvents and developing innovative approaches to support circular raw materials for batteries,” Wächtershäuser explained. Raw materials are a significant cost factor in cell production, so using them efficiently and responsibly is essential in terms of both economic and environmental considerations. The CMCC in Parsdorf is also helping the BMW Group learn more about how to further optimise the use of resources. Wherever technically feasible, residual materials generated during the production process are fed into the material loop. Active materials incorporate a significant share of recyclates.

EMAS certification: Strict requirements and high environmental standards

To obtain EMAS certification, businesses must fulfil stringent requirements and comply with rigorous environmental standards. EMAS is a globally recognised standard that helps companies to manage and continuously improve their environmental impact. A key part of the EMAS environmental management system consists of the international environmental management standard ISO 14001. EMAS also focuses on measurable improvements, transparency and legal security. The aim of the certification is to help companies continuously improve their environmental performance, for example by using energy and material more efficiently and reducing emissions, wastewater and waste from their sites. Besides these direct environmental impacts, EMAS focuses on indirect aspects, such as the environmental compatibility of products, procurement and supply chains, contractors’ conduct, and recording and evaluating the impact of employees commuting to work.

(Source: https://www.umweltbundesamt.de/themen/wirtschaft-konsum/wirtschaft-umwelt/umwelt-energiemanagement/emas-umweltmanagement-guetesiegel-der-europaeischen#systematisches-umweltmanagement-mit-emas)

How a battery cell is made: The stages of prototype production at the CMCC

Cell production at CMCC in Parsdorf starts with the manufacture of the electrode. The basic materials – including graphite for the anode and nickel oxides for the cathode – are dosed and mixed with binders and solvents in exact ratios to create what’s known as slurry. This is then used to coat wafer-thin metal foils and compress them after drying, in a process known in the business as calendering. In calendering, maximum precision is vital, as the foil is just a few micrometres thick, thinner than the threads of a spider’s web, and the coating is also in the micrometre range. The coated foils – or calendered electrodes – then move on to cell assembly, where they are wound into “jelly rolls” with the separator and inserted into the cell housing. The cells are then filled with electrolyte, charged for the first time and tested for function and quality.

Parsdorf prototypes: New cell format and advanced cell chemistry

Battery cells determine the key characteristics of electric vehicles: range, mileage and charging time. The new cylindrical cell by BMW is specially designed for the electric architecture of the Neue Klasse models and can significantly increase range by up to 30 percent (according to WLTP) – possibly even more, depending on the model. It has a uniform diameter of 46 millimetres and comes in two different heights: 95 and 120 millimetres. The nickel content is higher than that of BMW’s fifth-generation battery cells and the cobalt content is lower. On the anode side, the silicon content is higher, meaning an increase in volumetric energy density in the cell of more than 20 percent. The high-voltage battery, drive and charging technology of the Neue Klasse will have a higher voltage of 800 volts. One advantage of this is that it optimises the feed-in of energy at DC fast-charging stations.

Transparent reporting: Environmental impact statement now online

The environmental impact statement of the BMW Group’s CMCC and test-parts logistics in Parsdorf has been independently reviewed by TÜV SÜD Umweltgutachter GmbH and is now available online at (in German only): https://www.bmwgroup.com/content/dam/grpw/websites/bmwgroup_com/responsibility/downloads/de/2023/Umwelterklaerung_2023_Parsdorf.pdf

Munich/Zagreb. Innovations often arise where experts from different areas and organizations come together. This is exactly what is happening now as part of a research cooperation between the BMW Group's Battery Cell Competence Center (BCCC) and the University of Zagreb's Regional Center of Excellence for Robotic Technology (CRTA).

The two partners are jointly developing solutions to improve the production of battery cells using artificial intelligence (AI). Doctoral candidates and students at the University of Zagreb are collecting and structuring existing production data. Based on this data, AI models are created that can identify certain patterns in the data. This allows them to make predictions on how production can be further optimized in terms of performance, quality and costs.

Battery cell know-how along the entire value chain

The BMW Group bundles its battery cell know-how in its competence centers in Munich and Parsdorf. At the Battery Cell Competence Center (BCCC) in the north of Munich, battery cells for future generations of high-voltage batteries are developed and manufactured in small quantities. State-of-the-art laboratories, research facilities and prototyping facilities cover the know-how along the entire battery cell value chain. The BCCC is complemented by the Cell Manufacturing Competence Center (CMCC) in Parsdorf. The best battery cell from the BCCC is scaled towards a series process at the pilot line in Parsdorf. The close, cross-departmental cooperation between development, purchasing and production uniquely links product and process at the BMW Group.

The importance of European knowledge exchange

The University of Zagreb contributes its expertise in the fields of mechanical engineering, electrical engineering and computer science to this project. Both partners benefit from the continuous exchange of knowledge: "As a university, we offer the BMW Group access to the latest research results and innovative ideas, while our students benefit from the opportunity to apply their theoretical knowledge in practice," says Zdenko Tonković, Dean of the Faculty of Mechanical Engineering and Naval Architecture at the University of Zagreb.

Promoting young talents

Another aspect of this cooperation is the promotion of young talents. "Through this joint project, we inspire students for the BMW Group and the innovative work in our battery cell competence centers," explains Moritz Poremba, Head of Battery Cell Recycling Technology Development at the BMW Group. "Of course, we also hope to attract young talents to our company." The students benefit from the cooperation through intensive mentoring and the opportunity to expand their professional network in the industry. This increases their attractiveness on the job market and offers them excellent career opportunities. The cooperation between the BMW Group and the University of Zagreb strengthens the innovative power and competitiveness of both partners.

San Luis Potosí. BMW Group Plant San Luis Potosí is gearing up for production of the Neue Klasse: Construction of a local high-voltage battery assembly has now begun, along with expansion projects for the body shop, assembly and logistics areas. A total of 800 million euros will be invested in expanding the Mexican production site.

The Neue Klasse will also be produced in Mexico from 2027 onwards. The Sports Activity Vehicle model will be launched at the new BMW Group Plant Debrecen in Hungary as the initial derivative of the Neue Klasse in late 2025, while the Sedan will ramp up in Munich in 2026. Just one year later, additional production capacity will be available in Mexico – initially, for the Sports Activity Vehicle. The future high-voltage battery assembly at Plant San Luis Potosí, covering an area of more than 80,000 square metres, is key to integrating the Neue Klasse at the production site.

“The battery assembly in San Luis Potosí will be part of our global production network. For our new sixth-generation e-drive alone, we are building five locations on three continents,” explained Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production, at the start of construction in Mexico. The BMW Group is committed to the “local for local” principle worldwide. “Locating battery factories close to vehicle manufacturing makes production more resilient.”

Close links between battery factory and vehicle production

In line with its “local for local” principle, the BMW Group locates its high-voltage battery assembly facilities worldwide as close as possible to its vehicle plants. In addition to the location in San Luis Potosí, assembly sites for sixth-generation high-voltage batteries are also being built in Debrecen (Hungary), Shenyang (China), Woodruff, near Spartanburg (USA) and Irlbach-Straßkirchen (Lower Bavaria). This approach safeguards production, even in the event of unforeseen political and economic developments. Existing locations are also being strengthened, securing jobs. The short distances involved reduce the carbon footprint of vehicle production.

The BMW Group will use its newly developed round cells for the first time in the Neue Klasse. This leap in technology will boost the energy density of cells by 20 percent and improve charging speed by up to 30 percent. Range will be extended by 30 percent. 

Further development of Plant San Luis Potosí

As well as integrating battery assembly, other changes are being made at Plant San Luis Potosí: Just under 20,000 square metres will be added to the body shop, resulting in a total area of over 90,000 square metres. Assembly and logistics areas are also being expanded by almost 10,000 square metres.

“With this further development of our site, we are also gearing up in Mexico for the launch of the next BMW model generation. As the first premium OEM producing fully-electric vehicles and high-voltage batteries in Mexico, we are at the forefront of our industry and, at the same time, continuing to reduce our environmental footprint,” said Harald Gottsche, president and CEO of BMW Group Plant San Luis Potosí.

Photovoltaic output to double

When it comes to efficient energy supplies, the BMW Group uses site-specific solutions at its locations around the world. “In Mexico, we are planning to expand the photovoltaic systems within the plant, to double the output from the solar panels,” said Nicole Haft-Zboril, Head of Real Estate Management at the BMW Group. “The plan is to generate more than 20 percent of the electricity we need at the moment – directly on the factory premises.” The wastewater treatment plant has also been expanded, with an investment of 3.3 million euros significantly increasing the reuse of treated wastewater.

Extensive skills development programme

BMW Group Plant San Luis Potosí is also stepping up its commitment to skills development, aimed at ensuring employees are highly qualified and prepared for the challenges of the future. Training will include topics such as safety awareness around production of high-voltage systems and the use of robotics in manufacturing processes.

The BMW Group plant in San Luis Potosí started production in 2019. Around 3,700 employees currently produce the BMW 3 Series Sedan as well as the BMW 2 Series Coupé and the BMW M2 models for the global market.

Rayong, Thailand. After a joint ground-breaking ceremony with Milan Nedeljković, Board Member for Production, representatives of the Thai government and the German ambassador to #Thailand Ernst Reichel, construction work is underway for the BMW Group’s own local manufacturing facility for Gen-5 high-voltage batteries. With that, the BMW Group is readying yet another production facility to manufacture fully electric vehicles, with local #BEV production scheduled to start in the second half of 2025.

“Local production of high-voltage batteries in #Rayong is the next logical step in the continued electrification of our production network. Once again, the principle of ‘local for local’ applies, supporting economic development, employment opportunities and knowledge transfer in Thailand and the ASEAN region,” said Milan Nedeljković, Board Member for Production at BMW AG, at the ground-breaking ceremony.

The forthcoming high-voltage battery assembly facility will have a footprint of 4,000 square metres and is an important addition to the business activities of BMW Group Manufacturing Thailand. The new assembly line will convert imported battery cells into modules that will then be integrated into high-voltage batteries. The BMW Group has invested more than 1.6 billion baht (approx. 42 million euros) in the project, a significant share of which – almost 1.4 billion baht (approx. 36 million euros) – will be used to buy state-of-the-art equipment and systems.

The BMW Group has been producing high-voltage batteries in Thailand for locally made plug-in hybrids since 2019. Plant Rayong manufactures around two dozen BMW, MINI and BMW Motorrad models for the Thai as well as various ASEAN markets. In 2023 output totalled more than 12,000 cars and almost 11,000 motorcycles.

Comprehensive training programme

Employees will undergo comprehensive training programmes, which will be delivered in the global production network with the aim of improving the technical skills of local staff through knowledge transfer. The investment in professional training and development also underscores the BMW Group’s commitment to advancing the Thai economy.

Joint education programme with UNICEF – also in Thailand

As well as developing its own workforce, the BMW Group is very much involved in boosting industry in Thailand and the global transition to mobility solutions that help conserve resources. This year it is collaborating with UNICEF in Thailand to improve career opportunities for young people through a targeted STEM education programme, training and careers advice.

Leipzig. Electrification continues at BMW Group Plant Leipzig: Four months after launching production of the combustion-engined MINI Countryman, the all-electric version is now rolling off the lines at Leipzig as well. After phasing out production of the BMW i3, the birthplace of electric mobility at the BMW Group has welcomed another fully electric car to its range. It now manufactures four models with three drive types by two brands, all on a single production line: the BMW 1 Series, the BMW 2 Series Active Tourer (including the plug-in hybrid version), the BMW 2 Series Gran Coupe and the MINI Countryman in both its fully electric and combustion-powered versions.

The MINI Countryman Electric represents a major step in the MINI brand’s transition to full electrification by 2030 and combines an electrified go-kart feel with zero local emissions mobility. It comes in two fully electric variants: the Countryman E (150 kW, 204 hp | electricity consumption 17.4 – 15.7 kWh/100 km | CO2 emissions 0 g/km) and the more powerful all-wheel Countryman SE ALL4 (230 kW, 313 hp | electricity consumption 18.5 – 16.8 kWh/100 km | CO2 emissions 0 g/km).  

Consistent plant upgrades and flexible production system

To enable production of up to 350,000 units a year – 100,000 more than previously – Plant Leipzig has been continuously upgraded since 2018, with extensive additions and upgrades to the bodyshop, paintshop, assembly and logistics. “Our cars and components are very much in demand. In recent years the BMW Group has invested around 1.6 billion euros in the Leipzig site to produce additional vehicles and electric components, and now we’re increasing vehicle volumes too – which is great news for our plant,” said Petra Peterhänsel, Plant Director.

The main driver behind the volume increase is the MINI Countryman. During the course of 2024, output will rise to almost 500 units a day – on top of the 800 or so BMW vehicles the plant is producing. What’s more, thanks to its flexible production system, Plant Leipzig is in a position to respond quickly to customer demand, for example by increasing the share of fully electric vehicles.

Flexible assembly structures also meant the MINI Countryman Electric could be integrated seamlessly into production. The situation is similar with the different drive units, which are all produced on one and the same line in aggregate assembly and prepared for what’s known as “marriage” with the body. The e-drives, transmissions and control electronics (collectively known as the highly integrated electric drive topology, or HEAT) for the two all-electric models are connected directly in the plant. A new production line was required only for the control electronics.

More staff and nightshifts for increased production volume

Higher production volume means secure employment and up to 900 additional employees in vehicle production alone. By the end of 2024, Plant Leipzig will employ around 7,000 BMW staff. Working hours will need to be adjusted in all technologies, with nightshifts in assembly starting for the first time in September of this year and cars being produced round the clock in three shifts.

“Plant Leipzig first went on stream in 2005 with about 2,600 employees in production. 19 years later there are over 7,000. Over the years, the plant has grown steadily and considerably. The start of nightshifts in assembly represents another important milestone in the success story of our plant and is a clear show of confidence by our company in our site here in Leipzig,” emphasised Works Council Chairman Jens Köhler.

Made at Plant Leipzig: high-voltage batteries for the MINI Countryman Electric

With the production launch of the MINI Countryman Electric, all three stages of the Gen 5 high-voltage battery production process are now represented at BMW Group Plant Leipzig: cell coating, module production and battery assembly. Operations in all three are currently ramping up, with five cell-coating, three module-production and two high-voltage battery-production lines now in place.

“We are in the middle of the transformation to e-mobility,” said Markus Fallböhmer, Head of Battery Production at the BMW Group. “Starting this year, Plant Leipzig will carry out every stage of our in-house high-voltage battery production process. It’s our next great step forwards.”

Plant Leipzig’s e-component production capacity has been increasing since 2021. It will now manufacture not just the high-voltage batteries for the MINI Countryman Electric but also e-components for the BMW iX1, BMW iX2, BMW i4, BMW i5 and BMW iX made at other sites. The e-component production unit at Leipzig currently employs some 1,000 people.

To enable production of high-voltage batteries, spaces previously used for the BMW i3 and BMW i8 have been converted and new buildings added. One of them is a new hall with a footprint of about 61,000 m². This houses two lines capable of producing up to 300,000 high-voltage batteries a year. The BMW Group has invested over 900 million euros in e-component production at Plant Leipzig to date.

Resource-saving painting processes

At launch, the fully electric MINI Countryman comes in three additional body colours: British Racing Green, Chili Red and Blazing Blue – and with MINI’s trademark contrast roof, if desired. This is painted using a new overspray-free method that saves resources and is currently being readied for series operation. The term “overspray” refers to the mist of excess paint particles that forms when bodies are painted the conventional way. With the new technique, this mist no longer occurs. This makes it easier to paint in multiple colours as the laborious process of masking is no longer required. Overspray-free painting also helps save CO₂ emissions, as exhaust from the cabin requires less cleansing. In addition, it requires considerably less conditioned air, i.e. air that is brought to the exact temperature and humidity required for painting. As a result, less energy is needed to temper air and treat exhaust.

The burner technology used to dry the paint on contrast roofs was also converted for the start of MINI Countryman production and now consists of a bivalent system. The fuel-flexible burners can run on hydrogen (H2) as well as gas (methane, CH4) and even switch between the two while in operation. Five such bivalent hydrogen-capable burners are used to produce the contrast roofs for the MINI Countryman.

Further burners in the paintshop will also gradually switch to bivalent operations, with the next six hydrogen-capable burners just installed. This makes Leipzig a pioneer in the automotive industry and takes it ever closer to lower CO₂ emissions. “Our vision at Plant Leipzig is to decarbonise production as far as possible by replacing fossil fuels with green hydrogen,” said Petra Peterhänsel, explaining the long-term focus of the facility. This will require sufficient green hydrogen from a grid. A regional hydrogen grid is currently in planning, with Plant Leipzig set to benefit.

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.

Straßkirchen. The preliminary final results of the Straßkirchen referendum are in: A clear majority of Straßkirchen residents voted in favour of building the new BMW Group facility. With over 75 percent of the vote, the council’s “Yes to a BMW assembly plant for high-voltage batteries” motion was successful. Around 77 percent of the citizens voted.

“The people of Straßkirchen have voted for a joint future with the BMW Group. We are taking advantage here in Bavaria of the opportunities offered by the transformation towards electromobility,” said Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production. The planned location will secure the future of the Bavarian vehicle plants in Dingolfing, Regensburg and Munich, he continued, by supplying them with the high-voltage batteries required for e-mobility.

“The clear vote in Straßkirchen shows that many residents support investment in future-oriented technologies and jobs,” said Ilka Horstmeier, member of the Board of Management of BMW AG responsible for Human Resources and Real Estate. “At the same time, we are seeing that, with positive new solutions, a transparent process and open discussion, reliable decisions can be made for a joint future. All in all, this, today, sends an important signal for Germany as a whole as a location for industry.”

The next step on the road to plant construction will already take place in October. The local land-use planning process provides for a second round of public consultation on the construction project, where the BMW Group will also present the many expert opinions it has commissioned on the impact of site development.

Jobs and apprenticeships geared towards the future

Upon completion of the initial construction phase, the BMW Group plans to employ around 1,600 people at the future production site. About 70 percent will come from existing BMW Group locations; these employees will be able to share their know-how during construction of the new site. Around 7,500 BMW Group employees already live within a 20-kilometre radius of the planned location. In cooperation with Plant Dingolfing, the BMW Group will also offer about 50 apprenticeships at the planned site.

Reliable source of business tax

The BMW Group has already registered permanent establishments in the municipalities of Straßkirchen and Irlbach and has therefore been subject to business tax since August of this year – regardless of construction of the plant. Business tax payments are likely to continue to rise as a result of the planned site, reaching a high, single-digit million euro amount per year by the end of the 2020s.

Clear criteria for site selection

In Bavaria alone, the BMW Group evaluated a total of 20 potential sites according to numerous criteria in conjunction with “Invest in Bavaria”, the State of Bavaria's business promotion agency. Among these candidates, the municipalities of Straßkirchen and Irlbach were preferred over other available spaces in a multi-stage process. The decisive criteria included proximity to the BMW Group's Bavarian car plants, exclusion of nature reserves, water protection areas and forests, the size and shape of the plot, combined with a flat topography, and the fact that several thousand employees already live in the immediate vicinity of the site. After careful consideration, the possibility of embedding battery assembly within existing plant sites was ruled out, due to a lack of sufficient space for the required scope.

In February 2023, the BMW Group acquired a plot of 105 hectares in the municipal areas of Straßkirchen and Irlbach. The company also has purchase rights for approx. 29 additional hectares of adjacent land. This option area is currently managed by the respective owners.

Site to play key role in securing Bavaria’s future status as a car-building location

More than 36,000 people in Bavaria are currently employed at the vehicle plants in Munich, Dingolfing and Regensburg alone. The planned location will secure the future of these plants, by supplying them with the decisive component for electromobility: the high-voltage battery. This will not only safeguard existing jobs at the BMW Group’s car plants in Bavaria, but also create new jobs in the innovative field of e-mobility.

The BMW Group’s choice of location will also protect important jobs outside of the company and create new ones. The company currently maintains business relationships with around 1,000 suppliers and service providers from Lower Bavaria, including about 120 from the Straubing-Bogen area.

Close links between battery factory and vehicle production

In line with its “local for local” principle, the BMW Group is locating its high-voltage battery assembly facilities worldwide as close as possible to its vehicle plants: Production facilities for the sixth-generation BMW Group high-voltage battery are currently being built in Debrecen (Hungary), Woodruff, near Spartanburg (USA), San Luis Potosí (Mexico) and Shenyang (China). This approach safeguards production, even in the event of unforeseen political and economic developments. It will also strengthen existing locations, protecting jobs and creating new ones. The short distances involved also reduce the carbon footprint of vehicle production.

Further information on the planned Irlbach-Straßkirchen location

Details and the latest information on the new site can be found on the project website at www.bmwgroup-werke.com/irlbach-strasskirchen.

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.

• New BMW Group Plant Woodruff will produce high-voltage batteries for fully electric BMW X models at Plant Spartanburg.
• Investments of $ 700 million in the construction of the new Plant Woodruff and $ 1 billion in Plant Spartanburg in preparation for electric vehicle production
• Local for Local: short distances between cell supplier, battery assembly and vehicle production plant

Woodruff, S.C., U.S.A. – The BMW Group took a major step today towards building electric vehicles in the United States as it broke ground for a new high-voltage battery assembly plant in Woodruff, South Carolina. The BMW Group Plant Woodruff will produce sixth-generation batteries to supply fully electric vehicles at nearby BMW Manufacturing in Spartanburg. More than 300 jobs will be created onsite at Plant Woodruff with the opportunity to grow.

“We're making the BMW Group electric. Our new battery assembly plant in Woodruff will soon play an important role in our electric future here in the USA,” said Ilka Horstmeier, Member of the Board of Management of BMW AG responsible for People and Real Estate. “Through the Woodruff plant, we expand our footprint in the state of South Carolina. At the same time, we are taking our associates with us in this transformation. Our new Technical Training Center at the Spartanburg plant will prepare our 11,000 associates for the future. In this way, we are taking responsibility as a reliable employer and offer future-proof jobs at the same time.”

“Today’s groundbreaking is the start of a new era at Plant Spartanburg as we prepare to produce fully electric BMW X models for the world,” says Robert Engelhorn, president and CEO of BMW Manufacturing in Spartanburg. “The road to the future begins here in South Caronlina. Plant Woodruff will be state-of-the-art in terms of sustainability, flexibility, and digitalization.”

Extensive Investments in Plants Spartanburg and Woodruff

In October 2022, BMW Group announced a new $1.7 billion investment in its U.S. operations, including $1 billion to prepare Plant Spartanburg for the production of fully electric vehicles and $700 million to build a new high-voltage battery assembly plant. The Woodruff facility will be about 100 acres in size that includes construction of a technology building and support buildings such as a cafeteria, fire department, and energy center. 

Local for Local: Short Distances between Battery and Vehicle Production.

“We are working consistently to advance the transformation to electromobility”, says Markus Fallböhmer, Senior Vice President of Battery Production at BMW AG. "Cutting-edge production facilities for top-performance high-voltage batteries are a decisive factor in this." In expanding its production network, the company is following the principle of local for local: "Close connection of battery production with vehicle production is part of our strategy," explains Fallböhmer.

As part of the BMW Group’s “local for local” approach, the company will purchase battery cells for its electric vehicles from partner AESC, which is building a new 30 GWh battery cell factory in Florence, South Carolina. They will produce newly developed round lithium-ion battery cells, specifically designed for the sixth generation of BMW eDrive technology. The new battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent.

The BMW Group is particularly focused on keeping the carbon footprint and consumption of resources for production as low as possible, starting in the supply chain. Cell manufacturers will use cobalt, lithium and nickel that include a percentage of secondary material, i.e. raw materials that are not newly mined, but already in the loop, in production of battery cells. Combined with the commitment to use only green power from renewable energies for production of battery cells, the BMW Group will reduce the carbon footprint of battery cell production by up to 60 percent.

High Ecological Standards: Binding CO2 when pouring concrete

As the next BMW iFACTORY, BMW Group Plant Woodruff will also meet high ecological standards. The site will be operated without fossil fuels and will use 100% green electricity. The BMW Group has set itself the goal of reducing CO2 emissions in its global production network by 80 per cent by 2030 compared to 2019. Plant roofs are being prepared for the installation of photovoltaic systems. Intelligent LED lighting with motion detectors and an efficient dimming strategy reduce energy consumption and light emissions to a minimum. The high-voltage battery assembly basically requires no water. Rainwater is collected and used for purposes outside production. An innovative technology that involves injecting captured CO₂ into the fresh concrete during the mixing process will be used in the construction of the plant. This sequesters CO₂ permanently at a molecular level and increases the strength of the concrete.

BMW Group in South Carolina

Since 1992, the BMW Group has invested about $12.4 billion in its South Carolina operations. BMW Manufacturing is the largest BMW Group plant in the world, producing more than 1,500 vehicles each day. The plant is an important part of BMW’s global production network and plays a critical role in meeting the high demand for BMW Sports Activity Vehicles and Coupes in the U.S. and around the world. Nearly 60 percent of its vehicles are shipped to about 120 global markets, making BMW the largest automotive exporter by value in the United States for nine consecutive years. In 2022, approximately 60 percent of BMW vehicles sold in the U.S. came from Plant Spartanburg. The factory has an annual production capacity of up to 450,000 vehicles and employs more than 11,000 people. 

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.

• NEUE KLASSE to be released in 2025, local production in Shenyang for China from 2026
• BBA to invest RMB 10 billion in construction of assembly plant for sixth-generation high-voltage batteries in China
• Global production network for high-voltage batteries based on “local for local” principle

Shenyang. To mark the 20th anniversary of the BMW Brilliance Automotive Ltd. (BBA) joint venture, Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production, today announced local production of the NEUE KLASSE in China. Following the market launch in 2025, models of the next vehicle generation will also be produced from 2026 onwards by BBA in Shenyang. The high-voltage batteries required for this will likewise be manufactured locally. The virtual ground-breaking for a new assembly site for high-voltage batteries also took place as part of the anniversary celebrations. BBA is investing RMB 10 billion in the new location, which will produce battery cells for the next, sixth generation of high-voltage batteries from 2026 onwards. The “Sixth-Generation Battery Project” will play a key role in production of vehicles for the NEUE KLASSE and create around 2,000 new jobs in the region.

“From a small assembly facility with a limited number of units, our plants in Shenyang have developed into our largest production location worldwide. Today, 20 years after our joint venture’s initial start of production, I am delighted to announce local production of the NEUE KLASSE in China,” declared Milan Nedeljković in Shenyang. “Integration of the NEUE KLASSE into our production in China goes hand in hand with construction of a high-voltage battery assembly for the next, sixth generation of batteries and will make a significant contribution to further electrification of our lineup and, therefore, to our success as a company.”

20 years of BBA – strong partnership between China and Germany
The BMW Group has had a presence in the Chinese market since 1994 and founded the BMW Brilliance Automotive joint venture in May 2003. Over the past 20 years, the BMW Group has continuously expanded its activities in China, and production capacity in Shenyang has increased from 30,000 to 830,000 units. BBA currently produces seven model ranges, with fully-electric, plug-in hybrid and internal combustion engines.

Electromobility and digitalisation play an important role at the BMW Group and, particularly, in China. The BMW Group’s next model generation, the NEUE KLASSE, will embody all three pillars of future mobility: electric, digital and circular.

Global production network for high-voltage batteries based on “local for local” principle
Integration of the NEUE KLASSE in China and construction of battery factories for the sixth generation are further milestones, as the BMW Group systematically aligns its production network for electromobility. More than half the vehicles the BMW Group sells worldwide should be fully electric before 2030.

At present, the BMW Group produces electronic components and high-voltage batteries for its current electric vehicles at its German sites in Dingolfing, Leipzig and Regensburg, as well as at the Shenyang location in China. In addition to Shenyang, new assembly sites for sixth-generation high-voltage batteries will be added in Debrecen (Hungary), San Luis Potosí (Mexico) and Woodruff near Spartanburg (USA) in the next few years. These batteries will be used in the models of the NEUE KLASSE. The company also plans to establish a new location in Germany to supply its Bavarian vehicle plants with sixth-generation high-voltage batteries going forward.

With its “local for local” approach, the BMW Group is securing the increasing electrification of its product lineup in individual regions of the world. Short distances also enable CO₂ savings from logistics.

Expansion of research and development activities in Shenyang In preparation for the rollout of the NEUE KLASSE, the BMW Group has created an entire electromobility ecosystem in China, spanning research and development, the supply chain and production of batteries and electric vehicles. With facilities in Beijing, Shanghai, Shenyang and Nanjing, the BMW Group has built the biggest research and innovation network outside of Germany. The research and development centre in Shenyang is mainly focused on developing technologies for electromobility and localising products. To coincide with its tenth anniversary, the R&D facility was comprehensively expanded and development and validation capacity for BEVs in China increased. The site provides 19 test benches for low and high-voltage testing, pedestrian safety testing, improved electronic analyses and charging capacity tests at extreme temperatures. These expanded testing capacities can also help shorten development cycles.

Local supplier network further expanded
The BMW Group is continuously expanding its supplier network in China and consistently implementing its “local for local” approach. BBA already has around 430 local suppliers across the country. More than a quarter of these are in Liaoning Province and almost 100 in Shenyang.

Systematic implementation of BMW iFACTORY
Implementation of the BMW iFACTORY – the master plan for automotive production at the BMW Group – will drive further development of high-quality, intelligent and resource-efficient manufacturing in Shenyang. Based on the production principles LEAN. GREEN. DIGITAL., the BMW iFACTORY sets new standards for automotive production in the age of electric and digital mobility: The most recent example of this is the Lydia plant site that opened last year and was configured for the BMW iFACTORY from the beginning.

Reliable employer
The BMW Group and BBA provide high-quality jobs for more than 30,000 people in China; 26,000 of these at BBA alone. 92 percent of the managerial positions are currently held by Chinese staff.

Leipzig. BMW Group Plant Leipzig’s first cell coating line has gone into series operation as e-component production at the site continues to gain momentum. By 2024 the two existing module assembly lines will be complemented by a third, as well as four more cell coating lines and two more high-voltage battery assembly lines. The four coating lines will enter series operation during the course of this year at roughly two-month intervals.

“From 2024 our plant here in Leipzig will be able to run the entire process chain for high-voltage battery production,” said Markus Fallböhmer, head of Battery Production at the BMW Group. “So we will be making an important contribution to the transformation to electromobility.” To meet its goal of fully electric vehicles accounting for at least half of all sales by 2030, the BMW Group is investing more than €800 million to establish and develop e-component production at BMW Plant Leipzig.

More than 2,000 coated cells an hour

Covering 2,300 m², the new cell coating system at the BMW plant in Leipzig is located in the former production hall of the BMW i3, where production was phased out in the summer of last year. Straight afterwards the space was converted for e-component manufacturing in less than six months, and associates underwent the relevant training.

The new coating line can handle more than 10 million cells a year, or over 2,300 an hour. The coated cells are then used on the battery module production line in Leipzig, to make modules for the fully electric BMW i4* and BMW iX1*. A further line at the facility is producing battery modules for the BMW iX*.

From cell coating to high-voltage battery

High-voltage battery production happens in three stages: cell coating, module production and assembly of the battery itself. The processes are highly automated.

The BMW Group sources its cells from partners who manufacture them exactly to specification. The type that is used depends on the vehicle concerned and is chosen to ensure the best possible characteristics.

Coating lithium-ion cells consists first of pre-treating and patterning their surfaces with a laser. This involves the laser beam “chiseling” a texture into the outside of the uncoated cell to increase both its surface area and the surface tension of the aluminium casing. Next, the cells are plasma-cleansed to remove any dirt particles and oxides. Together, these two processes improve the adhesiveness of the surface, ready for the coating to be applied. It is administered by a specially developed machine that coats the cells in two layers, which are then hardened by UV and offer the best possible insulation for the cells. Finally, a fully automated three-stage quality control process is carried out in which the thickness and surface quality of the coating are inspected. A high-voltage test is conducted to ensure the coating is completely free from defects.

The cell coating used at the BMW Group is blue, which was deliberately chosen for its important role in the positioning of electric BMW i vehicles and as the signal colour of the range. Within the BMW Group production network, Plant Leipzig is a pioneer in electromobility, having produced the company’s first fully electric model, the BMW i3, from 2013 to 2022.

Once coated, the battery cells are assembled into larger units known as modules. When completed, these are fitted into a aluminium housing along with the control and cooling units and the connectors that will connect them to the vehicle. The size and shape of the housing and the number of modules inside depends on the vehicle variant. That way, each car receives the most suitable high-voltage battery.

A secure future for BMW Group Plant Leipzig

The continued expansion of Plant Leipzig is very much driven by e-component production, which will take up some 150,000 m² of manufacturing space in the future. “This is a long-term investment in the future of the Leipzig plant,” emphasised Plant Director Petra Peterhänsel, adding that the expansion of the plant would not only safeguard current jobs but also create new ones. “At present, more than 800 employees work in e-component production at our Leipzig site. By 2024 there will be more than 1,000.”

The next great milestone for Plant Leipzig will be production of the MINI Countryman successor, which will roll off the production lines from the end of this year. The crossover will be available with a choice of combustion engines or a fully electric drive – powered by high-voltage batteries made in Leipzig.

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}

Munich. The BMW Group is convinced that powerful, innovative, sustainably-produced battery cells will be key to the success of individual electromobility in the future. The company is set to launch a new era of e-mobility from 2025 with the models of its NEUE KLASSE – using newly-developed round battery cells optimised for the new architecture for the first time.

“The newly-developed sixth generation of our lithium-ion cells will bring a huge leap in technology that 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,” according to Frank Weber, member of the Board of Management of BMW AG responsible for Development. “We are also reducing CO₂ emissions from cell production by up to 60 percent. These are big steps for sustainability and customer benefits.”

“To meet our long-term needs, we will be building battery cell factories with our partners, each with an annual capacity of up to 20 GWh, at six locations in key markets for us: two in China, two in Europe and two in USMCA,” added Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “We have also reached agreement with our partners that they will use a percentage of secondary material for the raw materials lithium, cobalt and nickel, as well as utilising green power for production, to ensure CO₂-reduced manufacturing.”

The BMW Group has already awarded contracts in the two-digit billion-euro range for production of the new BMW battery cells. By leveraging the comprehensive in-house expertise of the company’s own Battery Cell Competence Centre, the team from development, production and purchasing has been able to significantly reduce costs for the high-voltage battery, thanks to the new battery cell and new integration concept for battery technology developed by BMW.Based on current market assumptions, costs can be reduced by up to 50 percent, compared to the current fifth generation. The BMW Group has set itself the goal of bringing manufacturing costs for fully-electric models down to the same level as vehicles with state-of-the-art combustion-engine technology.

Technological advances: new cell format and enhanced cell chemistry

The battery cell is responsible for electric vehicles’ core properties of range, driving performance and charging time. For the sixth generation of BMW eDrive technology used in the NEUE KLASSE, the company has fundamentally refined the cell format and cell chemistry. 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 highest-range 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. Compared to the prismatic cells of the fifth BMW battery cell generation, the nickel content in the sixth-generation BMW round cells is higher on the cathode side, while the cobalt content is 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.

The battery system plays a key role in the body structure of the NEUE KLASSE. Depending on the model, it can be flexibly integrated into the installation space to save space (“pack to open body”). The cell module level is thus eliminated.

The battery, drive train and charging technology in the NEUE KLASSE will also 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 the vehicle from 10 to 80 percent by up to 30 percent.

Battery cell factories in China, Europe and USMCA – each with total capacity of up to 20 GWh per year

To supply the battery cells needed for the NEUE KLASSE, the BMW Group has already awarded contracts in the two-digit billion-euro range for construction of battery cell factories to CATL and EVE Energy. Both partners will build two gigafactories in China and Europe. Each of the battery cell factories will have a total annual capacity of up to 20 GWh. Plans call for two more battery cell factories to be built in the North American free trade zone,
USMCA, for which the partners have not yet been nominated.

The three regions where the battery cell factories will be built will also benefit economically from the creation of new supply chains, new networks for subcontractors and new jobs.

CO₂-reduced production using green power and secondary material

The BMW Group is particularly focused on keeping the carbon footprint and consumption of resources for production as low as possible, starting in the supply chain. Cell manufacturers will use cobalt, lithium and nickel that include a percentage of secondary material, i.e. raw materials that are not newly mined, but already in the loop, in production of battery cells. Combined with the commitment to use only green power from renewable energies for production of battery cells, the BMW Group will reduce the carbon footprint of battery cell production by up to 60 percent, compared to the current generation of battery cells.

Reuse of raw materials will be one of the success factors for e-mobility in the future. Circular loops reduce the need for new raw materials, lower the risk of infringing environmental and social standards in the supply chain and generally result in significantly lower CO₂ emissions. That is why the long-term goal of the BMW Group is to use fully recyclable battery cells. In China, the company is currently creating a closed loop for reuse of the raw materials nickel, lithium and cobalt from high-voltage batteries, thus laying the cornerstone of a ground-breaking material cycle.

The cobalt and lithium used as raw materials for the new generation of BMW battery cells will be sourced from certified mines. This means the company retains full transparency over extraction methods and, in this way, can ensure responsible mining. The sourcing of both raw materials from certified mines takes place either directly through the BMW Group or via the battery cell manufacturer.

The 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. In this way, the company is also making itself less technologically, geographically and geopolitically dependent on individual resources and suppliers.

Development of future BMW battery cells at in-house competence centres

The BMW Group is constantly working to further develop energy storage systems. For instance, its sixth-generation battery technology also offers the option of using cathodes made of lithium iron phosphate (LFP) for the first time. This means the critical raw materials cobalt and nickel can then be avoided entirely in the cathode material. In parallel, the BMW Group is also pushing forward with development of all-solid-state batteries (ASSBs). The company aims to have high-voltage batteries of this type ready for series introduction by the end of the decade. The BMW Group will present a demonstrator vehicle with this technology on board well before 2025.

The BMW Group has been systematically building expertise in the field of battery cell technology since 2008. Since 2019, this know-how has been concentrated at the BMW Group’s Battery Cell Competence Centre (BCCC) in Munich. The BCCC spans the entire value chain – from research and development to battery cell design to manufacturability.

To ensure innovations in battery cell technology are put into practice quickly and efficiently, the BMW Group relies on a network of around 300 partners, with cooperation between established companies, startups and colleges, among others.

The knowledge gained in this way will be validated at the new Cell Manufacturing Competence Centre (CMCC) in Parsdorf, near Munich, which will begin commissioning near-standard production of samples in late 2022 for the future BMW battery cell generation to be used in the NEUE KLASSE from 2025 onwards.

The pilot line at the competence centre will make it possible to analyse and fully understand the cell production process under near-standard conditions. This will help enable future suppliers produce cells to specifications and according to their own expertise – thus further optimising battery cell production with regard to quality, output and costs.

NEUE KLASSE will make major contribution to sales volumes

With a fast-growing product lineup and high demand, the BMW Group aims to have more than two million fully-electric vehicles on the roads by the end of 2025.

The all-electric NEUE KLASSE will make a significant contribution to BMW Group sales volumes from mid-decade. The NEUE KLASSE has the potential to further accelerate the market penetration of e-mobility: This means 50 percent of the BMW Group’s global sales could already come from fully-electric vehicles before 2030.

The MINI brand will have an exclusively all-electric product range by the early 2030s, while Rolls-Royce will also be an all-electric brand from 2030. All future new models from BMW Motorrad in the field of urban mobility will likewise be fully electric.

If you have any questions, please contact:

BMW Group Corporate Communications

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

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

Leipzig. Today sees the launch of BMW Group Plant Leipzig’s second battery module production line. Further expanding e-component production in the German state of Saxony, the new system manufactures modules for the fully electric BMW i4*, made in Munich. Plant Leipzig’s first such production line went on stream in May 2021 and supplies the battery modules for the BMW iX*.

“Today’s launch of Leipzig’s second battery module production line makes an important contribution to delivering the battery components needed to make a growing number of electrified vehicles,” said Markus Fallböhmer, Head of Engine and E-Drive Production at the BMW Group. The gradual expansion of e-component production is taking the BMW Group ever closer to its goal for 2030, when fully electric models are expected to account for at least half of the BMW Group’s sales.

Ensuring the future viability of Plant Leipzig

The new battery module production line alone comes at an investment of around €70 million. As the expansion of e-component production continues, new jobs are being created as well, with some 250 people working on the new line by the end of 2022, in addition to the current 700-plus already in e-component production in Leipzig.

Plant Leipzig’s second battery module production system occupies an area of approx. 4,250 m² and uses BMW i production areas that are now vacant after the BMW i3 was phased out on 30 June. Each battery module passes through 196 production stations in total before it is complete and ready for further processing.

 “Plant Leipzig remains electrified,” said a delighted Petra Peterhänsel, Plant Director. “Now that BMW i3 production has wound down, we can use the skills and experience of our employees elsewhere and offer them secure jobs for the long term,” she commented, adding that this would continue to ensure the future viability of the plant.

To prepare for the steady increase in electrified vehicles,, e-drive production in Leipzig will become even more extensive and flexible as early as next year, with upcoming stages of the expansion programme creating further new jobs. Another major milestone will be production of the successor to the MINI Countryman, due to roll off the production lines from 2023. The crossover model will be available with combustion engines as well as an all-electric drive.

From battery cell to high-voltage battery

Production of high-voltage batteries can be broken down into two stages: module production and high-voltage battery assembly.

Module production is a highly automated process in which the lithium-ion cells first undergo plasma cleaning, before being coated by a specially developed system to ensure optimal insulation. They are then combined to form larger units known as modules. The BMW Group sources its battery cells from partners who produce them to the company’s exact specifications.

The completed battery modules are then installed in an aluminium housing, together with the connectors and the control and cooling units. The size and shape of the housing and the number of battery modules used differ depending on the vehicle variant. So, each high-voltage battery can be optimally adjusted to suit the car it will power.

Global production network for e-drives focused in Germany

To meet rising demand for e-drive component production capacity, the BMW Group draws on a worldwide production network. The high-voltage batteries and battery components for the full range of electrified BMW and MINI vehicles are made at the company’s own battery facilities, in Dingolfing, Leipzig and Regensburg in Germany, as well as Spartanburg (USA) and Shenyang (China). There is also localised production of high-voltage batteries in Thailand, for the plant in Rayong. In Munich, the BMW Group operates an e-drive pilot plant and a Battery Cell Competence Centre, where battery cell value creation processes are analysed in full and technologies for production processes are refined. Just outside Munich, the BMW Group is soon to open a Cell Manufacturing Competence Centre.

Located in Parsdorf, just to the east of the city, the new facility will be a pilot plant for battery cell production. It will model series production of lithium-ion battery cells and validate the feasibility of their large-scale manufacture, especially with regard to quality, time and costs.

In Dingolfing and at BMW Group Plant Landshut, the BMW Group manufactures electric motors in the Competence Centre for E-Drive Production. The casing for the highly integrated fifth-generation e-drive is made at BMW Group Plant Steyr.

• BMW Group continues to expand manufacturing capacity at the Competence Centre for E-Drive Production in Dingolfing
• E-drive trains for 500,000 electrified vehicles per year from 2022
• Extensive in-house drive train expertise: Start of production for fifth-generation high-voltage batteries in Germany
• Successful transformation to e-drive train production

Munich/Dingolfing. Production of fifth-generation high-voltage batteries and battery modules for use in the BMW iX* and BMW i4 is now underway at the Competence Centre for E-Drive Production in Dingolfing. At the same time, the company is also increasing production capacity for its fifth-generation electric motor, which has been built in Dingolfing for the BMW iX3* since 2020 and will also power the BMW iX* and BMW i4. “We expect at least 50 percent of the vehicles we deliver to our customers worldwide to be electrified by 2030. To achieve this, we are relying on our extensive in-house drive train expertise: We are increasing capacity at existing drive train production locations – like here in Dingolfing – and developing capabilities at others – like recently in Regensburg and Leipzig,” explained Dr Michael Nikolaides, Senior Vice President, Production Engines and E-Drives, BMW Group.

The BMW Group is investing more than 500 million euros in expanding production capacity for e-drives at its Dingolfing location alone between 2020 and 2022. From 2022, it will produce e-drives for more than half a million electrified vehicles. The BMW Group will invest a total of around 790 million euros in expanding capacity for electric powertrain components at its Dingolfing, Leipzig, Regensburg and Steyr locations between 2020 and 2022.

Standard production of the BMW iX* will soon get underway at BMW Group Plant Dingolfing, followed by production of the BMW i4 at Plant Munich in the autumn. The highly integrated e-drives and high-voltage batteries for these vehicles will all be manufactured at the Competence Centre for E-Drive Production in Dingolfing. The BMW Group already began producing battery components at Plants Regensburg and Leipzig in April and May 2021. In line with growing demand for e-drives, BMW Group Plants Landshut and Steyr are also stepping up production of e-drive housings.

Production of fifth-generation BMW eDrive technology

The output and energy content of drive units and high-voltage batteries with fifth-generation BMW eDrive technology can be flexibly scaled. This means they can be optimally adjusted to suit different model variants.

Each vehicle uses up to two highly integrated e-drives, which combine the electric motor, power electronics and transmission in a single housing. Based on the design principle of a current-excited rotor, the fifth-generation e-drive does not require any materials classified as rare-earth metals.

BMW eDrive technology also comprises a high-voltage battery with state-of-the-art battery cell technology. The BMW Group agreed with its suppliers that they will only use renewable green power for producing fifth-generation battery cells. The entire high-voltage battery boasts outstanding qualities in the areas of performance, charging and discharging characteristics, durability and safety. The technically standardised production process for battery modules has been further developed in such a way that different module variants can be produced on the same production line – in line with the growing range of electrified vehicle models and performance levels. The production systems are highly flexible and scalable. Battery modules are produced from supplied prismatic battery cells at the respective BMW Group production location. A modular system developed in-house allows model-specific high-voltage batteries to be manufactured from these modules in a flexible arrangement.

The company has outstanding expertise and experience, both in the field of battery cell technology and in production of model-specific high-voltage batteries. The BMW Group conducts basic research in the fields of cell chemistry and cell design at its own Battery Cell Competence Centre. The BMW Group also produces battery cell prototypes itself. These battery cell prototypes are used in tests to validate the development maturity of battery cells and to demonstrate the effectiveness of the production processes. In addition, the prototype production of the battery cells serves the identification of process potentials as well as the optimization of the production processes. In this way, the BMW Group gains a thorough understanding of the entire battery cell value chain and the decisive competitive advantages its chemical and technical properties offer. This enables battery cells to be manufactured to precise specifications that are geared towards each vehicle’s individual requirements.

Competence Centre for E-Drive Production

Following extensive expansion, the Competence Centre for E-Drive Production now provides a usable area of 125,000 sq. m. This is where the company manufactures electric motors and the components needed for them, as well as high-voltage batteries and battery modules. A paint coating is also applied to the battery cells at this location. The coating increases mechanical robustness and thermal conductivity, thereby improving insulation and cooling of the even more powerful fifth-generation battery cells.

Plant Dingolfing has been manufacturing standard high-voltage batteries and battery modules since 2013, when the BMW Group's first all-electric vehicle, the BMW i3*, went into production. The first production lines for electric motors and high-voltage batteries for plug-in hybrids went on-stream there in 2014. The Competence Centre for E-Drive Production has been steadily growing ever since. The plant has also been producing high-voltage batteries for the fully electric MINI Cooper SE* since 2019 and, since 2020, also the highly integrated fifth-generation e-drive used for the first time in the BMW iX3*. Production of the even more powerful high-voltage batteries for the BMW iX* and BMW i4 is now getting underway. E-drives for future models can also be produced on the flexible production lines.

Qualification for long-term, sustainable jobs

With the BMW Group systematically pursuing progress in electromobility, the demands on employees and their areas of responsibility are also constantly evolving. “We are growing our staff for e-drive production almost exclusively through personnel restructuring. We are actively shaping the transformation process and leveraging our employees’ skills so we can develop long-term sustainable jobs,” explains Nikolaides.

The Competence Centre for E-Drive Production in Dingolfing currently has almost 1,400 employees. By the end of 2021, around 1,900 employees are expected to work in e-drive production in Dingolfing.

Production employees receive further training at the in-house learning centre, which uses innovative vocational training and further education methods to provide employees with intensive preparation for their new tasks. Employees’ knowledge and skills are being expanded specifically to include new electromobility technologies, with a training concept that is constantly updated. The training sessions are held in the classroom, at practice workstations and directly on the production lines. Digital methods and augmented reality play a bigger role here than ever before. Thanks to these methods, the training courses were also able to continue safely during the coronavirus pandemic, in compliance with health and safety measures.

“The learning centre takes a holistic approach that supports employees throughout their professional development and further education, from their first day in production,” reports Dr Sven Jochmann, head of Production E-Drives Dingolfing, Landshut, Regensburg, Leipzig. “As well as trainers and managers, new colleagues are also supported by trained mentors who help them quickly find their way around their new working environment,” adds Jochmann.

Transformation of the Dingolfing location

The Dingolfing location is a prime example of the successful transformation of the BMW Group plants towards e-mobility and digitalisation. E-drive production, including electric motors and high-voltage batteries, is located in an existing, roughly 50-year-old building at the site, rather than using new space. The infrastructure was adapted to the new requirements and expanded accordingly. A modern staff restaurant seats 300 and there is also a new parking deck with space for 800 vehicles. The structural measures are rounded out by a 25,000 sq. m. logistics hall, new office spaces and social rooms close to the production area, as well as an additional plant gate in the south for improved logistics flows.

On the issue of sustainability, the BMW Group takes a holistic approach to reducing CO₂ emissions and minimising resource consumption that covers the entire value chain, including in-house production, the supply chain and use phase. In Dingolfing, as at all BMW Group locations, production uses only green power. In addition, all BMW Group locations have been net carbon neutral since this year, through corresponding offsets and certificates. The company is also using many other levers: from building technology to energy-efficient installations to increased use of renewable energies. Electric trucks will be used for intra-company goods transport at the Competence Centre for E-Drive Production from the autumn.

2030: At least 50 percent of global BMW Group sales will be fully electric

The BMW Group continues its massive electromobility ramp-up: The company will offer five fully-electric models by the end of this year: the BMW i3*, the MINI Cooper SE* and the BMW iX3*, as well as the two main innovation flagships, the BMW iX* and BMW i4.

Between now and 2025, the BMW Group will increase its sales of fully-electric models by an average of well over 50 percent per year – more than ten times the number of units sold in 2020. Based on its current market forecast, the company also expects at least 50 percent of its global sales to come from fully-electric vehicles in 2030. In total, over the next ten years or so, the BMW Group will be releasing about ten million fully-electric vehicles onto the roads.

Global e-drive production network with a focus in Germany

The high-voltage batteries and battery components needed for all BMW and MINI electrified vehicles come from the company’s own battery factories in Dingolfing, Leipzig and Regensburg in Germany, as well as from Spartanburg (USA) and Shenyang (China). The BMW Group has also localised production of high-voltage batteries in Thailand, at its Rayong plant, and is working with the Dräxlmaier Group for this. Munich is home to the e-drive pilot plant and the Battery Cell Competence Centre, where the BMW Group is conducting a full analysis of battery cell value creation processes and advancing technology for its production processes.

The company produces electric motors at the Competence Centre for E-Drive Production in Dingolfing and at BMW Group Plant Landshut. BMW Group Plant Steyr builds the housing for the highly integrated fifth-generation e-drive.

• BMW Group now producing high-voltage batteries and
  battery components at three locations in Germany alone:
  Dingolfing, Leipzig and Regensburg
• Less than a year from decision to start of production in
  Leipzig and Regensburg
• Production of battery components for BMW Group’s fifth generation of fully-electric vehicles

Munich/Leipzig/Regensburg. The BMW Group is launching production of battery components at its plants in Leipzig and Regensburg and expanding its e-drive production network. It has been less than a year since the decision was made to expand production capacity for e-drives in Germany. BMW Group Plant Leipzig will launch series production of battery modules on Monday, 3 May 2021, while BMW Group Plant Regensburg began coating battery cells for high-voltage batteries in April 2021. High-voltage batteries will also be produced in Regensburg from 2022. “We expect at least 50 percent of the vehicles we deliver to our customers worldwide to be fully electric by 2030,” said Michael Nikolaides, Senior Vice President Production Engines and E-Drives. “And we are systematically expanding our production network for electric drive trains in response to this.”

The company is investing more than 250 million euros in its Regensburg and Leipzig locations alone to supply the BMW Group’s growing number of electrified vehicles with high-voltage batteries. High-voltage battery components will be used in production of the BMW iX* and BMW i4, both of which will be released onto the market shortly. The production systems are highly flexible and will also supply battery components for other BMW Group electrified vehicles in the future.

“We are increasing capacity at existing locations and developing capabilities at others. In this way, we can make the most of our associates’ expertise and experience and offer them long-term, secure jobs,” Nikolaides added. The BMW Group is investing a total of around 790 million euros in expanding production capacity for drivetrain components for electrified vehicles at its Dingolfing, Leipzig, Regensburg and Steyr locations between 2020 and 2022.

Production of battery modules at BMW Group Plant Leipzig

Leipzig is the BMW Group’s pioneer plant for electromobility and has been building the BMW Group’s first fully-electric vehicle, the BMW i3*, since 2013. Now, the location will also produce electric drivetrain components.

“We are continuing on this track with the launch of battery module production and further enhancing the plant’s future viability for electromobility,” confirmed Hans-Peter Kemser, Plant Director of BMW Group Plant Leipzig. “Plant Leipzig will play an important role in supplying the growing number of BMW Group electrified vehicles with battery components.” The successor to the MINI Countryman, scheduled to come off the production line in Leipzig from 2023, will be released onto the market with an electric drive train. “The expertise and experience gained by staff at our location over the years can be put to good use. Construction of the battery module lines will make a major contribution to long-term job security,” emphasised Kemser.

From May 2021, the 10,000 sq. m. production area previously reserved for the BMW i8 will be used for manufacturing battery modules. Production will get underway with 80 employees working in battery module production; by the end of the year, there will be a staff of around 150. The company will invest more than 100 million euros in the initial phase of battery module production at the Leipzig location between 2020 and 2022.

However, the production line for battery modules that just ramped up is only the beginning: The company has already decided to further increase capacity for battery module production at its Leipzig location. A second production line will come on stream in 2022. This will ensure the company has sufficient volumes to meet growing demand for drivetrains.

Production of battery components and high-voltage batteries at BMW Group Plant Regensburg

BMW Group Plant Regensburg already produces two electrified models – plug-in hybrid variants of the BMW X1* and BMW X2* – and will start building the fully-electric BMW X1 in 2022. The site's e-mobility expertise and experience will now also be used in production of battery components and high-voltage batteries.

The first of four coating lines for fifth-generation battery cells went on stream in April 2021, occupying a production and logistics area of more than 40,000 sq. m. “Regensburg has made a successful start to production of electric drivetrain components – this is an important milestone in our transformation,” according to Frank Bachmann, Plant Director of BMW Group Plant Regensburg. The three other systems will ramp up in stages between now and the end of 2021 to supply the growing volumes needed for the BMW Group’s fully electric vehicles. Up until now, battery cells have been coated at BMW Group Plant Dingolfing and the BMW Brilliance Automotive Plant Powertrain in Shenyang, China.

Coating increases the battery cell’s mechanical robustness and thermal conductivity. This helps improve insulation and cooling of the fifth-generation e-drive’s even more powerful battery cells. From 2022, the plant in Regensburg will produce high-voltage batteries from battery modules. A total of 100 employees already work in battery component production at the Regensburg site; by the end of 2022, there will be more than 300. The company will invest more than 150 million euros in ramping up production of battery components and high-voltage batteries between 2020 and 2022.

Holistic approach to sustainability

The BMW Group has a clear mission to ensure the “greenest electric vehicle comes from the BMW Group”, starting in production. The BMW Group already sources only green power for its manufacturing locations worldwide.

The BMW Group’s energy goals are geared towards the long term. The company reduced its emissions per vehicle produced by more than 70 percent between 2019 and 2006.The aim is to lower these CO2 emissions by another 80 percent by 2030. This means the BMW Group will have reduced its CO2 emissions from production to less than ten percent of what they were in 2006.

A further corporate objective is to reduce CO2 emissions in the supplier network by 20 percent by 2030. At the same time, the BMW Group has reached an agreement with its suppliers that they will only use renewable green power for producing fifth-generation battery cells.

From battery cell to high-voltage battery

Production of high-voltage batteries can be broken down into two stages: Battery modules are produced in a highly automated process. The lithium-ion cells first undergo a plasma cleaning, before a specially developed system coats the cells to ensure optimal insulation. Next, the battery cells are assembled into a larger unit, the so-called battery module. The BMW Group obtains its battery cells from partners who produce them to the company’s exact specifications. The BMW Group uses different battery cells, depending on which provides the best properties for each vehicle concept.

The battery modules are then installed in an aluminium housing, together with the connections to the vehicle, and the control and cooling units. The size and shape of the aluminium housing and the number of battery modules used differ according to the vehicle variant. This ensures the high-voltage battery is optimally adjusted to the vehicle.

Global e-drive production network focused in Germany

The high-voltage batteries and battery components needed for all BMW and MINI electrified vehicles come from the company’s own battery factories in Dingolfing, Leipzig and Regensburg in Germany, as well as from Spartanburg (USA) and Shenyang (China). The BMW Group has also localised production of high-voltage batteries in Thailand, at its Rayong plant, and is working with the Dräxlmaier Group for this. Munich is home to the e-drive pilot plant and the Battery Cell Competence Centre, where the BMW Group is conducting a full analysis of battery cell value creation processes and refining technology for its production processes.

The company produces electric motors at the Competence Centre for E-Drive Production in Dingolfing and at BMW Group Plant Landshut. BMW Group Plant Steyr builds the housing for the highly integrated fifth-generation e-drive.

With the BMW Group’s electro-offensive now in full swing, increased production capacity is needed for electric drivetrain components. Thanks to intelligent vehicle architectures and a highly flexible production network, the BMW Group will have about a dozen fully-electric models on the roads from 2023. The BMW i3*, MINI Cooper SE* and BMW iX3* already on the market will be joined later this year by the BMW iX* and BMW i4. Between now and 2025, the BMW Group will increase its sales of fully-electric models by an average of well over 50 percent per year – more than ten times the number of units sold in 2020. By the end of 2025, the company will have delivered a total of around two million fully-electric vehicles to customers. Based on current market forecasts, the BMW Group expects at least 50 percent of its global sales to come from fully-electric vehicles in 2030. In total, over the next ten years or so, the company will release about ten million fully-electric vehicles onto the roads.

This means the BMW Group is strategically on track to reach the European Union’s ambitious CO2 reduction targets for 2025 and 2030 as well.

Munich/Dingolfing. The BMW Group is stepping up its e-mobility ramp-up and setting new standards for the transformation of the industry with its production. Today, at its largest European manufacturing location in Dingolfing, the company opened the Competence Centre for E-Drive Production. Having produced electric powertrain components in Dingolfing since 2013, the BMW Group is now expanding its capacity significantly. Bavarian Minister-President Markus Söder and Chairman of the Board of Management of BMW AG Oliver Zipse symbolically launched production of the new, highly integrated BMW e-drive, which combines the electric motor, transmission and power electronics in a central housing. The new generation of the BMW e-drive will be used for the first time in the new BMW iX3, which will go into production in China in late summer.

At the Competence Centre in Dingolfing, the BMW Group will produce electric powertrain components such as battery modules, high-voltage batteries and electric motors on eight production lines. Over the coming years, the company will set up four additional lines, which will boost the location’s production capacity significantly.

Chairman of the Board of Management of BMW AG Oliver Zipse said at the inauguration: “We continue to ramp up electromobility and set standards for the transformation of our industry. By 2022, in Dingolfing alone, we will be able to produce e-drives for more than half a million electrified vehicles per year. At the same time, we will produce a mix of fully-electric vehicles, plug-in hybrids and models with a combustion engine on a single line, as required by demand, so we can offer our customers the ‘Power of Choice’. This shows how we have paved the way for making the shift in our industry a real success story.”

In the next few years, the production area of the Competence Centre for E-Drive Production will be expanded to ten times the original size: from 8,000 square metres in 2015 to 80,000. The number of employees will also be increased. In the first half of 2020 alone, the workforce grew from 600 to 1,000. Up to 2,000 employees will work in production of e-drives at the Dingolfing location in the medium term.

In-house production of high-voltage batteries and electric motors

“Our unique expertise in producing high-voltage batteries and electric motors ensures our technology is always state of the art and we are able to ramp up production quickly and systematically in line with demand,” explained Michael Nikolaides, head of Planning and Production Engines and E-Drives. A quarter of BMW Group vehicles sold in Europe should have an electric drive train by 2021; a third in 2025 and half in 2030. By 2023, the BMW Group will offer its customers no fewer than 25 electrified models – around half of them with a pure electric drive train.

The BMW Group possesses extensive expertise throughout the entire value chain. Both the new, highly integrated e-drive and new high-voltage batteries were developed in-house in close cooperation between development departments and production. The company is pooling its expertise in large-scale standard production of electric drive trains at the Competence Centre for E-Drive Production and thereby ensuring efficient production that can respond to demand for drive trains for fully and partially-electric vehicles at short notice. “Experience with our flexible production system for combustion engines has been fed into the design of our e-drive production. As a result, e-drive production is also able to respond quickly to demand for BEV and PHEV vehicles. In this way, we are realising the ‘Power of Choice’ for our customers,” explained Nikolaides.

The Competence Centre has also standardised the technology used in production of battery modules for new fifth-generation high-voltage batteries, refining the process to reflect the growing range of electrified models and allowing different module variants to be produced on the same line. In this way, the company is not only setting the course for production technology, but also securing jobs and key qualifications.

Dingolfing site transforms itself for electromobility

“BMW Group Plant Dingolfing is a perfect example of how the automotive industry is transforming itself for e-mobility. We have everything under one roof here: production of batteries, electric motors and electrified vehicles,” explained Christoph Schröder, head of BMW Group Plant Dingolfing. Today, around ten percent of the vehicles produced in Dingolfing are already electrified. With the launch of the BMW iNEXT in 2021, Plant Dingolfing will be capable of producing fully-electric vehicles, plug-in hybrids and models with a combustion engine on a single line. “That’s how we are implementing the ‘Power of Choice’ in car production,” Schröder added. These highly flexible structures will also benefit the next generation of the BMW 7 Series, which will be produced at the site and released onto the market as petrol, diesel, plug-in hybrid and – for the first time – fully-electric variants.

Dingolfing has years of expertise building components for electric vehicles. Series-produced high-voltage batteries for the BMW i3 have been coming off the line here since 2013. This location has also produced electric motors since 2015. The majority of high-voltage batteries and electric motors for all BMW Group electrified vehicles come from the Competence Centre for E-Drive Production. The existing structures of a large former parts warehouse belonging to BMW Group aftersales logistics have been retrofitted and used for this purpose in recent years.

“At the same time, we have driven the long-term shift of competence at the location by providing employees with targeted training for new tasks and extending development into electromobility as an area of future activity,” said Chairman of the Dingolfing Works Council Stefan Schmid. “Further education and qualification are key to a successful transformation.”

Global e-drive production network focused in Germany

The BMW Group has a highly flexible production network for electric drive trains. The high-voltage batteries needed for electrified vehicles come from the company’s three battery factories in Dingolfing, Spartanburg (USA) and Shenyang (China). The BMW Group has also localised battery production in Thailand, where it is working with the Dräxlmaier Group. BMW Group Plants Dingolfing and Landshut produce electric motors. The Battery Cell Competence Centre in Munich covers the entire battery cell value chain, from research and development to battery cell composition and design, all the way to large-scale manufacturability.

Fifth-generation BMW eDrive technology

On the same day as the official opening, the Competence Centre also began production of the fifth-generation electric drive train. This highly integrated electric powertrain component combines the electric motor, transmission and power electronics in one housing. Materials considered rare earths are also no longer required. The drive train is compatible with all vehicle concepts and will be available with various power levels for different models. The system’s highly integrated design increases power density significantly.

The fifth-generation BMW eDrive technology features new and more powerful high-voltage batteries. Thanks to their scalable modular design, these can be used flexibly in the respective vehicle architecture and at the respective production locations. The Competence Centre is currently preparing to ramp up production of these new high-voltage batteries.

Sustainable long-term materials sourcing

Sustainability and security of supply are important factors in the expansion of electromobility. The BMW Group sources the battery cells needed for production of high-voltage batteries from leading system suppliers who manufacture the cells to the BMW Group’s exact specifications.

For the BMW Group’s purchasing experts, ethically responsible raw material extraction and processing starts at the very beginning of the value chain: They take a keen interest in battery cell supply chains – all the way down to the mines themselves. Compliance with environmental standards and respect for human rights are top priority.

For its new fifth-generation electric high-voltage batteries, the company has restructured its supply chains and will source cobalt and lithium for battery cells directly from 2020. This ensures full transparency over where these two important battery raw materials come from. Supply contracts also guarantee supply security up to 2025 and beyond. Going forward, cobalt will be sourced directly from mines in Australia and Morocco, while the lithium will come from Australia and other countries.

Munich. As part of its electromobility expansion, the BMW Group is deepening its existing business relationship with Ganfeng Lithium Co., Ltd. based in Jiangxi (China). The two companies have signed a supply contract for the lithium needed as a key raw material for battery cells. “The projected order volume totals 540 million euros. In this way, the BMW Group is securing 100% of its lithium hydroxide needs for fifth-generation battery cells in its high-voltage batteries,” said Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.
The contract is for a term of five years (2020 – 2024).

“Alongside cobalt, lithium is one of the key raw materials for electromobility. With the signing of this contract, we are securing our lithium needs for battery cells,” continued Wendt. “We aim to have 25 electrified models in our line-up by 2023 – and more than half will be fully electric. Our need for raw materials will continue to grow accordingly. By 2025, for lithium alone, we expect to need about seven times the amount we do today.”

Sustainability and security of supply are important factors in the expansion of electromobility. For the BMW Group’s purchasing experts, ethically responsible raw material extraction and processing begins right at the start of the value chain: They are intensively involved throughout our battery cell supply chains – all the way down to the mines themselves. Compliance with environmental standards and respect for human rights have absolute priority. “Sustainability is an important aspect of our corporate strategy and plays a central role in expanding electromobility. We are fully aware of our responsibilities: Lithium and other raw materials must be extracted and processed under ethically responsible conditions,” underlined Wendt. Ganfeng extracts lithium by mining so-called hard-rock deposits in Australia under the strictest sustainability standards.

The BMW Group already publishes the countries of origin of the cobalt it uses on its website (see here). For the upcoming fifth generation of battery cells, the company has also restructured its supply chains and will be sourcing both lithium and cobalt directly from 2020, making the raw materials available to the two battery cell manufacturers, CATL and Samsung SDI. This ensures full transparency over where raw materials come from. Cobalt will be sourced directly from mines in Australia and Morocco in the future. Supply contracts will ensure the company’s security of supply up to 2025 and beyond.

The BMW Group also recently announced that it is increasing the order volume for battery cells from CATL to 7.3 billion euros (contract: 2020 to 2031) and also signed a long-term contract worth 2.9 billion euros with Samsung SDI for its fifth-generation electric drive trains (contract: 2021 to 2031). “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,” added Wendt.

The BMW Group's fifth-generation electric drive trains from 2021 on will also be produced entirely without using rare earths. “This means we will no longer be dependent on their availability,” emphasised Wendt.

Extensive in-house expertise throughout entire value chain for battery cell technology

The BMW Group possesses extensive in-house expertise throughout the entire value chain for battery cell technology. In-house battery production takes place at BMW Group Plants Dingolfing (Germany) and Spartanburg (USA), and at the BBA plant in Shenyang (China). The BMW Group has also localised battery production in Thailand and is working with the Dräxlmaier Group in this area.

In mid-November, the company opened its Battery Cell Competence Centre in Munich. The aim of the competence centre is to advance battery cell technology and introduce it into production processes. The company is investing a total of 200 million euros in the location, which is set to create up to 200 jobs. The production of battery cell prototypes makes it possible to fully analyse and understand cell value creation processes. “Whether we set up our own standard production of cells at a later date will largely depend on how the supplier market develops,” according to Wendt.

The BMW Group has formed a joint technology consortium with Swedish battery manufacturer Northvolt and Umicore, a Belgian developer of battery materials, for the purpose of developing the cell technology crucial to electromobility. The cooperation will focus on creating a complete, sustainable value chain for battery cells in Europe, extending from development and production all the way to recycling. Recycling of battery components plays a decisive role in closing the materials cycle as far as possible and maximising reuse of raw materials as demand for battery cells grows.

BMW Group is a pioneer in electromobility – 25 electrified models by 2023

The company will have 25 electrified models in its line-up by 2023. The basis for this is provided by flexible vehicle architectures for fully-electric vehicles, plug-in hybrids and models with combustion engines that enable the company to respond quickly to changing conditions. More than half of the 25 models will be fully electric. The BMW Group will double its sales of electrified vehicles between 2019 and 2021. The company expects to see a steep growth curve up to 2025: Global sales of electrified vehicles should increase by an average of over 30 percent every year. In Europe, the company is also following an ambitious growth logic: The aim is to increase the percentage of electrified vehicles in the new vehicle fleet to a quarter in 2021 and to a third in 2025; by 2030, they should account for half of sales volumes.

As an e-mobility pioneer, the BMW Group is already a leading supplier of electrified vehicles. By the end of 2019, the company aims to have more than half a million vehicles with fully-electric or plug-in hybrid drive trains on the roads. Within two years, the BMW Group will offer five fully-electric series-production vehicles: Alongside the BMW i3*, with more than 160,000 units built to date, this year will see the start of production of the fully-electric MINI* at Plant Oxford. This will be followed in 2020 by the fully-electric BMW iX3 from Shenyang (China) and, in 2021, by the BMW iNEXT, which will be produced in Dingolfing, and the BMW i4 from Plant Munich.

Please contact us if you have any questions:

Corporate Communications

Saskia Eßbauer, Corporate Communications

Saskia.Essbauer@bmw.de, Telephone: +49 89 382 18364

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Mathias.M.Schmidt@bmwgroup.com, Telephone: +49 89 382 24544

Internet: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 31 production and assembly facilities in 15 countries; the company has a global sales network in more than 140 countries.

In 2018, the BMW Group sold over 2,490,000 passenger vehicles and more than 165,000 motorcycles worldwide. The profit before tax in the financial year 2018 was € 9.815 billion on revenues amounting to € 97.480 billion. As of 31 December 2018, the BMW Group had a workforce of 134,682 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.

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Spartanburg/ Munich. BMW Group Plant Spartanburg in the US state of South Carolina has doubled its capacity for production of high-voltage batteries. The plant’s own battery facility now produces the new fourth-generation batteries. These are intended for the plug-in hybrid models of the new BMW X5 and the future BMW X3, also produced in Spartanburg.

“We have invested around ten million US dollars in a new battery assembly line and expanded the area to more than 8,000 square metres. This means we could double the number of batteries produced if needed to meet market demand,” explains Michael Nikolaides, Senior Vice President Engines and Electrified Drivetrains, BMW Group.

The new assembly line will be able to produce different types of fourth-generation batteries to serve the growing range of electrified vehicles locally. These batteries are based on a new technology concept that further enhances their performance.

More than 120 people will be employed in battery production at Plant Spartanburg by the end of the year, having completed a comprehensive training programme to acquire the technological know-how needed for battery production.

“We have produced batteries on site at Plant Spartanburg since 2015 – making the BMW Group a pioneer for electromobility in the US,” says Knudt Flor, President and CEO, BMW Manufacturing, Co., LLC. In the past four years, the plant’s battery assembly team has produced a total of more than 45,000 batteries.

Further investment in production of BMW X5 and BMW X3 plug-in hybrids

Between 2015 and 2018, BMW Group Plant Spartanburg built the first series produced plug-in hybrid vehicle, the BMW X5 xDrive40e (combined fuel consumption: 3,3 l/100km; combined power consumption: 15,3 kWh/100km ; combined CO2-emission: 77 g/km), for the core BMW brand. The start of production for the new BMW X5 xDrive45e (combined fuel consumption: 2,0-1,7 l/100km*; combined power consumption: 23,5-20,3 kWh/100km*; combined CO2-emission: 47-39 g/km*) will be in August 2019; production of the BMW X3 xDrive30e (combined fuel consumption: from 2,4 l/100 km*; combined power consumption: from 22,7 kWh/100 km*; combined CO2-emission: from 56 g/km*; provisional figures) will get underway in December.

“The BMW X5 and BMW X3 are currently among the top-selling BMW models in the US. We expect their plug-in hybrid variants to be just as popular with customers,” adds Flor.

Since the start of the year, the BMW Group has invested a further ten million US dollars in production of plug-in hybrid models. An additional 225 vehicle assembly workers received training in the production of electrified vehicles, adding to the Plant’s already skilled staff.

International production network for batteries

The BMW Group currently has three battery facilities: at the Competence Centre for E-drive Production at BMW Group Plant Dingolfing in Germany, at BMW Group Plant Spartanburg in the US and at Plant Powertrain of its joint venture, BMW Brilliance Automotive (BBA). The BMW Group also produces batteries for local car production in cooperation with a partner in Thailand. The BMW Group’s battery research and pilot plant are located in Munich.