BMW Group has expanded its global electric vehicle (EV) battery supply network by bringing South Korean battery manufacturers Samsung SDI and LG Energy Solution on board as additional suppliers for its sixth-generation (Gen6) high-voltage battery systems. The move is part of the German automaker’s strategy to strengthen regional manufacturing, diversify its supply chain and ensure a reliable battery supply for its upcoming electric vehicles.
Under the new agreements, Samsung SDI will supply Gen6 battery cells from its established manufacturing facilities in Europe, while LG Energy Solution will provide battery cells from its production facilities in the United States. Deliveries from both suppliers are expected to begin in the late 2020s.
The latest partnerships will support BMW’s next-generation electric vehicle programme, including models developed under its Neue Klasse platform. By expanding its supplier base, the company aims to reduce dependence on individual battery manufacturers and improve the resilience of its global EV production operations.
BMW Strengthens Regional Battery Manufacturing Strategy
BMW is following a ‘local for local’ approach to its global supply chain, focusing on sourcing essential components closer to its vehicle manufacturing facilities. The strategy is designed to reduce transportation distances, strengthen regional industrial capabilities and improve supply security across major automotive markets.
With the addition of Samsung SDI, BMW will source battery cells produced in Europe from three major manufacturers: CATL, EVE Energy and Samsung SDI. Meanwhile, LG Energy Solution will become an additional battery cell supplier for BMW’s operations in the United States.
The company believes that working with multiple battery manufacturers across different regions will provide greater flexibility in procurement while reducing potential supply chain disruptions.
According to BMW, diversifying its battery procurement network is an important part of maintaining competitiveness in the rapidly evolving electric vehicle industry.
Five Gen6 Battery Assembly Facilities Planned Worldwide
BMW’s regional manufacturing strategy also extends to the assembly of its Gen6 high-voltage battery systems. The automaker has established five battery assembly facilities located close to its vehicle production plants.
These facilities are situated in Irlbach-Straßkirchen in Germany, Debrecen in Hungary, Shenyang in China, Woodruff in the United States and San Luis Potosí in Mexico.
By bringing battery cell suppliers, battery assembly operations and vehicle manufacturing facilities closer together, BMW aims to create more efficient regional production networks. This approach is also expected to support local employment and strengthen industrial development in these markets.
BMW Continues Investing in Battery Technology and Recycling
Alongside its external supplier partnerships, BMW is investing in its in-house battery research, manufacturing and recycling capabilities through three specialised competence centres in Bavaria.
The Battery Cell Competence Centre in Munich focuses on developing and evaluating future battery cell technologies. The Cell Manufacturing Competence Centre in Parsdorf works on improving battery production processes, manufacturing efficiency and quality standards.
Additionally, BMW’s Cell Recycling Competence Centre in Salching is developing a direct battery recycling process to recover valuable raw materials and reintegrate them into the production cycle.
BMW’s expanded partnerships with Samsung SDI and LG Energy Solution highlight its long-term commitment to building a diversified and regionally balanced EV battery supply chain. As the company prepares for its next generation of electric vehicles, securing reliable battery production capacity will remain a key priority for its global electrification strategy.
