In an effort to minimize supply issues and maximize regional incentives, the BMW Group is speeding up its efforts in the field of electric mobility and is increasingly embracing regional supply chains, following the “local for local” principle. The company’s goal is to procure components, such as battery cells, in close proximity to vehicle manufacturing, and gradually localize the supply chain for raw materials.
In a significant development, the Belgian company Umicore has joined as a new partner to support the establishment of a local supply chain in North America. Umicore will provide cathode active battery materials to our battery cell supplier, AESC, from a new facility in Ontario, Canada. This marks a crucial milestone in fortifying the BMW Group’s regional supply chains and ensuring the growth of electric mobility.
In alignment with the “local for local” philosophy, our partner AESC is currently in the process of constructing a battery cell factory in Florence, South Carolina. This facility, with an initial capacity of 30 GWh/a, will manufacture cutting-edge cylindrical lithium-ion battery cells designed specifically for the sixth generation of BMW eDrive technology. Importantly, the electricity used in producing these battery cells and cathode raw materials will be sourced from renewable sources.
Joachim Post, a member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network, expressed, “The BMW Group follows a globally balanced procurement strategy across the three main geographical regions of the world. Our US-based battery cell supplier will now be obtaining key primary materials from Canada. We are delighted that Canada is playing a vital role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America.”
Moreover, BMW Group has made a substantial investment in South Carolina. In October 2022, Oliver Zipse, Chairman of the Board of Management of BMW AG, announced a significant investment of 1.7 billion US dollars to expand the US production site. This includes 700 million US dollars allocated for the construction of the BMW Group’s new assembly center in Woodruff, which will produce high-voltage batteries for the fully-electric BMW X models in the future. Initially, this facility spanning around 93,000 square meters will produce sixth-generation battery modules, generating approximately 300 new job opportunities.
The new sixth-generation battery format promises to boost energy density by over 20 percent and enhance charging speed and range by up to 30 percent. Simultaneously, CO2 emissions from cell production will be reduced by up to 60 percent. This reduction will be achieved through the use of renewable energy by cell suppliers and the incorporation of a portion of secondary materials in the production of lithium, cobalt, and nickel raw materials.
