BMW to Manufacture Batteries for its EV Segment; Will Build 5 Gigafactories

Highlights :

  • Joachim Post, a member of the Board of Management, announced the plan that BMW will enter into the battery manufacturing business.
  • The company has already signed deals with partners like CATL, Northvolt and Samsung SDI.

Germany’s leading automaker BMW has said that it’s tying up with partners to build five gigafactories around the world that will produce batteries for its electric vehicles segment. The company has said that these gigafactories will be strategically positioned where BMW is already manufacturing electric vehicles. The idea is to cut logistics costs and expedite the operations of the two segments.

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Joachim Post, a member of the Board of Management, announced the plan of BMW to enter into the batteries manufacturing business. Post has been leading the Purchasing and Supplier Network division of the German car maker.

Joachim Post was speaking during the Annual Media Conference of BMW when he announced the batteries production plans. “In the future, we will also operate gigafactories in the regions where we produce electric cars,” he said.

BMW has not yet disclosed the details of the plan but it has been reported that the company has signed deals with partners like CATL, Northvolt, and Samsung SDI.

This is a complete change in the stance of the company as far as battery manufacture is concerned. Last year, BMW CTO Frank Weber stated that it was not feasible for the company to foray into the manufacturing of batteries as its technology keeps evolving and there are frequent changes in cell chemistry.

It is being reported that BMW will be entering the solid state batteries segment, which are claimed to be more energy efficient. As per experts, solid state batteries come with better range and improved thermal efficiency.

Robust battery pack is an inalienable part for the success of electric vehicles portfolio of BMW. Recently its Chief Executive Officer (CEO) Oliver Zipse stated that BMW’s electric cars will account for half of the total sales by the end of this decade. There will be 15 new electric vehicles of BMW in production this year itself including sedan types of i3, i5 and i7.

High Profits; Higher R&D

Recently, BMW announced that its net profit has hit a historic high in 2021; this is when the company is spending greatly in research and development with regards to electric vehicles.

Of the total sales, about 13 per cent were of electric vehicles produced by BMW. In absolute numbers, the company had sold more than 328,000 electric vehicles around the world.

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