Osegi
Automotive·2 min read

BMW Neue Klasse: Samsung SDI and LG to Supply Gen6 Cells Locally

BMW adds Samsung SDI in Europe and LG Energy Solution in the US as cell suppliers for its Gen6 batteries, in line with its Local for Local sourcing strategy.

Cylindrical battery cells for BMW's Neue Klasse Gen6 high-voltage battery on a production line.
Image: Autos
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BMW is bringing in two more cell suppliers for its sixth-generation (Gen6) high-voltage batteries. Samsung SDI is to deliver cylindrical cells from Europe, while LG Energy Solution will supply them from the US. Both South Korean companies are due to deliver from existing plants in each region from the end of the 2020s. The initial announcement does not say how large the contracts are or how long they run.

BMW presents the deals as part of its "Local for Local" procurement strategy: components should be sourced where the cars are built. That is meant to shorten transport routes, secure supply and keep value creation in the region. "Diversifying procurement is an integral part of the BMW Group's purchasing strategy," said purchasing board member Nicolai Martin.

Who supplies what today

In Europe, BMW has so far relied on CATL and EVE Energy. For US production, AESC was planned and currently supplies BMW from its global plant network on an interim basis. Samsung SDI and LG now join them. BMW assembles the cells into batteries at five sites near its vehicle plants: Irlbach-Straßkirchen in Lower Bavaria, Debrecen in Hungary, Shenyang in China, Woodruff in South Carolina and San Luis Potosí in Mexico.

Korean trade press has reported figures for LG's contract: up to ten years, around 10 GWh per year and a value of more than 10 trillion won, or at least about 6.6 billion euros. Neither BMW nor LG has confirmed these terms. There are no estimates for Samsung SDI.

What the Gen6 battery offers

The Gen6 packs use cylindrical cells with a 46 mm diameter in heights of 95 and 120 mm. They sit directly in the battery housing without a module layer (cell-to-pack), and the battery also serves a structural role in the body. BMW cites over 20 percent higher energy density than the previous generation, up to 30 percent more range and shorter charging times.

The agreements regionalize cell production, not the whole chain. BMW does not disclose where lithium, nickel, cobalt and graphite come from, or where cathode and anode materials are made, nor the share of local value creation. A local cell plant offers limited protection against raw-material export restrictions or trade disputes over precursors. What more suppliers at more sites mainly give BMW is room to switch.

BMW calls localization of cells complex, requiring heavy investment, robust supply chains and cell makers willing to produce locally. Hendrik Lang, responsible for high-voltage battery purchasing and quality, says the global partner network gives BMW a "resilient, flexible and competitive battery cell supply."

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Tags:bmwneue klassesamsung sdilg energy solutionbattery cellsgen6

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