BMW said it signed battery-cell supply agreements with Samsung SDI for European facilities and LG Energy Solution for U.S. plants, supporting regional production of its sixth-generation high-voltage batteries.
Samsung SDI is assigned BMW’s European facilities, while LG Energy Solution will supply the automaker’s plants in the United States. BMW said each company will manufacture cells in its respective region. Deliveries are expected to begin in the late 2020s.
BMW described the agreements as part of its “local for local” procurement approach, which places components near the facilities that make batteries and vehicles. Nicolai Martin, a BMW AG board member responsible for purchasing and supplier-network management, said, “Diversifying procurement is an integral part of the BMW Group’s purchasing strategy.” He said the company seeks to keep value chains close to production while drawing on global procurement markets, and that the battery partnerships would strengthen value creation in Europe and the United States.
Hendrik Lang, who leads high-voltage battery purchasing and quality at BMW Group, said working with cell makers across markets would help keep supply “resilient, flexible and competitive.” BMW’s European battery-cell supplier list also includes China’s CATL and EVE Energy alongside Samsung SDI.
BMW has established five new high-voltage battery assembly sites near vehicle plants: Irlbach-Strasskirchen in Germany, Debrecen in Hungary, Shenyang in China, Woodruff in South Carolina and San Luis Potosi in Mexico. The sites assemble delivered cells into packs for BMW electric vehicles, supporting production across major markets.
Together, the regional sourcing and assembly arrangements place cell production and pack-making within the broader markets where BMW builds vehicles.
