BMW Group announced on November 10 that it has selected Samsung SDI and LG Energy Solution as additional suppliers of high-voltage battery cells and has signed supply contracts with them.
Under this agreement, Samsung SDI will supply high-voltage battery cells for BMW Group from its production facilities in Europe, while LG Energy Solution will do so from its local facilities in the United States, starting in the late 2020s. High-voltage batteries are critical components that influence key characteristics such as driving range and charging performance in electric vehicles.
This contract aligns with BMW Group's 'local production, local supply' strategy, which aims to source components closer to vehicle production sites. The plan is to diversify suppliers by region and reduce transportation distances for parts, thereby enhancing supply stability.
BMW Group applies this principle not only to battery cell procurement but also to battery assembly. The company has established new high-voltage battery assembly plants near its vehicle production facilities in five locations worldwide: Germany (Ilmenau-Strasskirchen), Hungary (Debrecen), China (Shenyang), the United States (Woodruff), and Mexico (San Luis Potosí).
This production system enables more efficient supply chain operations by reducing transportation distances between suppliers, battery assembly facilities, and vehicle production plants. Local assembly facilities strengthen regional infrastructure and contribute to job creation.
Nikolai Martin, BMW Group's Head of Purchasing and Supply Chain Management, stated, "Diversifying procurement sources is key to BMW Group's purchasing strategy. We are leveraging the potential of the global procurement market to enhance product competitiveness and achieve results in various markets while promoting localization across the entire value chain."
Meanwhile, BMW Group surpassed 2 million cumulative sales of battery electric vehicles (BEVs) in September, ranking first among all premium brands. Including plug-in hybrid electric vehicles (PHEVs), the total sales of electrified models reached approximately 3.5 million as of September.
* This article has been translated by AI.
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