BMW signs additional battery supply deals with Samsung SDI and LG Energy Solution, expanding push into European and U.S. markets

[Financial News] BMW Group is expanding its partnerships with Korean battery makers by adding Samsung SDI and LG Energy Solution as suppliers of battery cells for electric vehicles. Samsung SDI will supply batteries made at its European facilities, while LG Energy Solution will supply batteries made at its U.S. plants, starting in the late 2020s. As global automakers accelerate efforts to localize battery supply chains and diversify sourcing, Korean battery companies are expected to strengthen their foothold in European and North American markets.
BMW Group said on the 10th that it had signed agreements with Samsung SDI and LG Energy Solution for the supply of high-voltage battery cells. The agreements are part of its “Local for Local” strategy of sourcing batteries in areas close to vehicle production sites. Specific contract values and supply volumes were not disclosed.
Under the agreements, Samsung SDI will supply BMW with battery cells made at its European production facilities, while LG Energy Solution will supply cells made at its U.S. plants. High-voltage batteries are a key component that determines an electric vehicle’s driving range and charging performance. BMW’s strategy is to secure both supply stability and product competitiveness through partnerships with major battery manufacturers.
BMW is building its battery supply chain in close coordination with its vehicle production sites. It has newly built high-voltage battery assembly plants in five locations around the world: Irlbach-Straßkirchen in Germany, Debrecen in Hungary, Shenyang in China, Woodruff in the United States, and San Luis Potosí in Mexico. The move is aimed at improving logistics efficiency and securing a stable supply chain by shortening transport distances between battery cell suppliers, assembly facilities, and vehicle assembly plants.
Nicolai Martin, a member of the BMW Group Board of Management responsible for purchasing and supply chain, said, “Diversifying our sources of supply is central to BMW Group’s purchasing strategy. We are leveraging the potential of global procurement markets to enhance product competitiveness and succeed in diverse markets, while pursuing localization across the entire value chain.”
BMW is also strengthening its in-house technological capabilities in battery cell development, manufacturing, and recycling. Its Battery Cell Competence Center in Munich, Germany, is developing next-generation high-voltage battery technologies, while its Cell Manufacturing Competence Center in Parsdorf is researching mass-production technologies and quality improvements. At its Recycling Competence Center in Salching, it is developing technologies to recover raw materials from used batteries and feed them back into the production process.
BMW Group’s growing electric vehicle sales are also seen as a factor behind its efforts to strengthen its battery supply chain. BMW surpassed 2 million cumulative sales of all-electric vehicles last September. Cumulative sales of electrified vehicles, including plug-in hybrids (PHEVs), stood at about 3.5 million as of September this year.
Hendrik Lang, a member of the BMW Group Board of Management responsible for high-voltage battery purchasing and quality, said, “We are working with the world’s leading battery cell manufacturers to ensure supply stability and competitiveness, while responding flexibly to market changes.”

[email protected] Kim Dong-ho Reporter