LG Energy, Samsung SDI sign battery supply deal with BMW

LG Energy Solution and Samsung SDI have entered into agreements with BMW Group to supply high-voltage battery cells for their vehicles, starting in the late 2020s, according to a press release from the German automaker. The agreements stipulate that LGES and Samsung SDI will provide sixth-generation (Gen6) battery cells, which will be manufactured at their respective production facilities in the United States and Europe.

The specifics of when these deliveries will take place have not been disclosed by BMW. The company adheres to a "local for local" approach in its global supplier network, aiming to source components as close as possible to its vehicle production facilities. This diversification of procurement is a key part of BMW's purchasing strategy, enabling the company to ensure global competitiveness and successful market performance.

Nicolai Martin, a member of the BMW AG Board of Management responsible for purchasing and supplier network management, stated that the company achieves this by operating as locally as possible within its value chains, capitalizing on the potential of its global procurement markets. High-voltage batteries are a critical component of electric vehicles (EVs), significantly influencing vehicle performance, including driving range and charging speed.

Through their battery cell partnerships, LGES and Samsung SDI are actively contributing to value creation in both Europe and the United States.