Regional cell suppliers for gen-six batteries
BMW Group has announced supply agreements with Samsung SDI and LG Energy Solution for cells used in its sixth-generation high-voltage batteries, the automaker said in a press release reported by Supply Chain Dive. LG Energy Solution will supply battery cells for BMW electric vehicles in North America, while Samsung SDI will supply cells for EVs manufactured in Europe, with supply beginning in the late 2020s.
Hendrik Lang, head of purchasing and quality of high-voltage batteries at BMW, said the partner network with leading cell manufacturers is meant to keep supply resilient, flexible, and competitive.
Plants aligned with five battery sites
BMW’s purchasing approach ties cell sourcing to localized supply chains, with production planned near five high-voltage battery manufacturing facilities close to vehicle plants. Those sites include Irlbach-Straßkirchen in Lower Bavaria; Debrecen, Hungary; Shenyang, China; Woodruff, South Carolina; and San Luis Potosí, Mexico.
Lang said regional battery infrastructure helps secure jobs and shortens distances among suppliers, battery plants, and assembly lines, which the company frames as a competitiveness lever.
Diversified procurement beyond two new partners
In Europe, beyond the Samsung SDI agreement, BMW had already secured supply deals with CATL and EVE Energy. Nicolai Martin, BMW board member for purchasing and supplier network, said diversifying procurement is central to the group’s strategy and that BMW aims to operate as locally as possible in value chains while using global procurement markets.
The release notes that building a localized battery chain requires significant investment and depends on technology companies establishing operations near BMW’s manufacturing footprint, along with a favorable regulatory climate.
In-house battery competence and recycling
BMW highlighted in-house expertise in battery development, production, and recycling across three EU sites. It runs a Battery Cell Competence Center in Munich for future cell technologies, a Cell Manufacturing Competence Center in Parsdorf for production quality and efficiency, and a Cell Recycling Competence Center in Salching that recovers raw materials using a BMW-developed recycling concept for new batteries.
Lang said these centers let BMW shape technology and engage suppliers on equal footing.
Production investments in the US and Europe
Alongside the cell deals, BMW has been scaling EV output. In February, it announced roughly 650 million euros (about $760 million) in upgrades at Plant Munich for electric vehicles on its updated Neue Klasse platform; internal combustion production there is set to end by late 2027, after which the plant will build EVs only.
Over the summer, BMW completed a $1.7 billion project at Plant Spartanburg, South Carolina, expanding the factory and funding the Woodruff EV battery plant to support U.S. electric vehicle production.
Earlier this year BMW launched the electric iX3 SUV with a new battery design using cylindrical cells with 20% higher energy density and an 800-volt electrical system. Executives on the Q1 earnings call said future Neue Klasse vehicles will be a key growth driver.