BMW Adds Samsung SDI and LG to Gen6 Battery Supply Chain

BMW has confirmed that Samsung SDI and LG Energy Solution will join its supply chain for sixth-generation high-voltage battery cells, delivering Gen6 cells from regional facilities starting in the latter part of the 2020s to shorten transport distances and diversify procurement.

Regional sourcing and the "local for local" approach

The Munich automaker says the move implements a "local for local" strategy to source cells closer to its vehicle factories. BMW frames the approach as a way to reduce exposure to individual supplier problems and lengthy logistics while adding more procurement options in regions where it builds electric vehicles. The company also states it is not abandoning existing partners or Chinese suppliers.

Gen6 cell technology and supplier roles

The agreements cover Gen6 battery cells, which BMW says define Neue Klasse-based i3 and iX3 models and have been applied to Cluster Architecture-based electric vehicles. Gen6 cell technology differs from BMW's fifth-generation rectangular prismatic cells; Samsung SDI will supply large-format cylindrical Gen6 cells to European facilities, while LG Energy Solution will supply cells for BMW's North American operations.

• Samsung SDI — Gen6 large-format cylindrical cells for Europe
• LG Energy Solution — Gen6 supply for North America
• CATL and EVE Energy — continued sourcing of Euro-produced cells

Production sites and timeline

BMW expects regional cell supply to begin in the latter part of the 2020s. North American operations that may be supported by LG Energy Solution include the Spartanburg plant in the United States and BMW Group Plant San Luis Potosi in Mexico, which is preparing for volume electric-vehicle production in 2027. BMW has allocated 800 million euros to the Mexican plant to prepare for Neue Klasse vehicle production, including the iX3 and i3.

BMW continues to source cells from Chinese suppliers CATL and EVE Energy for Europe, with Samsung SDI joining that supplier group. The automaker says the expanded portfolio reduces dependence on any single supplier or region and lowers the risk that a disruption, whether geopolitical or an individual supplier-level issue, will interfere with electric-vehicle production.