The BMW Group said Tuesday that it has additionally selected SamsungSDI and LG Energy Solution as suppliers of high-voltage battery cells for its electric vehicles. SamsungSDI is scheduled to supply battery cells produced in Europe, while LG Energy Solution will supply those produced in the United States.
This contract follows BMW's "local production and supply" principle. It is a strategy to purchase components near vehicle production hubs to reduce transportation distances and enhance supply stability. BMW aims to build regional supply chains while diversifying its suppliers to respond flexibly to market changes.
As a result, the two domestic battery companies can now expand their cooperation with BMW by leveraging overseas production bases. SamsungSDI will broaden its foundation for supplying batteries for premium electric vehicles in Europe, and LG Energy Solution will do so in the United States.
BMW is also pursuing a localization strategy not only in procuring battery cells but also in assembly processes. It has established high-voltage battery assembly plants near vehicle production factories in five regions: Ilvesbach-Strasskirchen in Germany, Debrecen in Hungary, Shenyang in China, Woodruff in the United States, and San Luis Potosi in Mexico. This is to reduce transportation distances between cell suppliers, battery assembly facilities, and finished vehicle plants.
Battery technology development is also underway simultaneously. At three competence centers located in Bavaria, Germany, BMW is advancing next-generation cell development, mass production process research, and raw material recycling. The cumulative sales of BMW's pure electric vehicles surpassed 2 million units in September last year.
Nikolai Martin, head of procurement and supply chain at the BMW Group, emphasized, "Diversification of procurement sources is central to the BMW Group's procurement strategy," adding, "We are leveraging the potential of the global procurement market to enhance product competitiveness and promoting localization across the entire value chain."
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