BMW contracts Samsung SDI and LG for Gen6 battery cells

BMW says it has contracted Samsung SDI and LG Energy Solution to supply cells for its sixth-generation high-voltage batteries. Samsung SDI will supply from Europe. LG Energy Solution will supply from the United States. Both will ship from plants they already run, starting in the late 2020s. The company posted the contracts from Munich on November 9 at 8:31 a.m. Central European time, 3:31 a.m. AST.

The new names sit beside suppliers BMW already uses. The company says that, with these nominations, it will source cells made in Europe from CATL, EVE Energy and Samsung SDI. It says LG Energy Solution will also supply cells in the United States. It does not give volumes, prices or a first delivery date inside the late 2020s.

BMW calls the approach local for local. It says it buys parts close to the plants that build the vehicles when it can. It says that shortens shipping and makes supply more secure. Nicolai Martin, the board member for purchasing and the supplier network, said, "Diversifying procurement is an integral part of the BMW Group's purchasing strategy."

Gen6 battery assembly is planned at five sites. BMW says it has built those plants near its vehicle factories: Irlbach-Straßkirchen in Lower Bavaria, Debrecen in Hungary, Shenyang in China, Woodruff in the United States and San Luis Potosí in Mexico. The cell contracts are separate from that assembly. The suppliers make the cells. BMW assembles the packs.

A recycling center is still ahead. BMW says a Cell Recycling Competence Center in Salching will be built and run by Encory GmbH. BMW says it owns the method, which recovers materials and puts them back into production. It does not say the center is open.