BMW To Buy Almost $5 Billion Worth Of Batteries From Chinese Supplier

BMW has signed a huge contract with Chinese battery maker Contemporary Amperex Technology (CATL) to purchase almost $5 billion worth of batteries from the company.

During an announcement regarding CATL’s upcoming production site in Germany, BMW purchasing head Markus Duesmann said the automaker will source 4 billion euros ($4.7 billion) worth of batteries from CATL in the coming years to power its upcoming fleet of electric vehicles.

The contract comes despite the fact that BMW is actively investing in its own battery cell research, and shows the company’s willingness to outsource a pivotal component that’ll drive many of its vehicles in the future. The contract also serves as a testament to China’s expertise in building world-class battery cells at a good price.

CATL’s German facility will be located in the Thuringa region and the first phase of the project will call for around 240 million euros ($280 million) of investments. Roughly 1.5 billion euros worth of batteries ordered by BMW will be produced at the site.

Speaking to Reuters, CATL chairman Robin Zeng said the firm is open to the idea of building more factories.

“We want to supply all the OEMs (manufacturers) in Europe. If the Thuringia project is successful, then we can consider other locations,” Zeng said.

BMW currently receives its batteries from two different suppliers, but said that it is considering working with a third and is in discussions with eight manufacturers.

The German carmaker confirmed that it had invested in CATL’s Germany factory, though both companies declined to disclose the extent of the financial contribution.

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  • Six_Tymes

    Does anyone remember who the automotive CEO was that just a few years ago said “going electric is not a race, its more like a walk to the finish line”

    I wish i saved the video

    • Dude[Check JoinDate InProfile]

      No… but Belltower suggested BMW would never be an EV threat vis a vis Tesla.

  • eb110americana

    If they’re anything like me, BMW’ll leave them at the back of a drawer until they forget about them only to find they’ve leaked acid everywhere when the remote control dies.

  • LeStori

    So will be able to buy an electric BMW and recharge it with electricity from my local brown coal fired power station….

    • Status

      Or with electricity from your local hydro-station or nuclear plant, whatever is conveniently located.

    • Dude

      I hope so. Coal is abundant, cheap and reliable.

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