The BMW Group is intensifying its e-mobility drive in North America by focusing on a regional supply chain approach, championed by their “local for local” strategy. This involves sourcing key components, notably battery cells, in proximity to where vehicles are assembled.
Why It Matters
In a bid to boost e-mobility adoption, securing a reliable and region-specific supply chain is crucial. Localizing primary materials and components can reduce logistical challenges, promote economic growth within regions, and potentially lower the carbon footprint associated with long-haul transportation.
Key Points
- New Partnership: Belgian firm Umicore is set to supply cathode active battery materials to BMW’s battery cell provider, AESC, from a fresh plant located in Ontario, Canada.
- Battery Production: AESC is in the midst of constructing a battery cell manufacturing plant in Florence, South Carolina, designed to output an inaugural 30 GWh/a. The factory is geared towards creating advanced cylindrical lithium-ion battery cells tailored for BMW’s sixth-generation eDrive technology. Notably, power used in the production of these battery cells and cathode materials will be 100% renewable.
- Strategic Positioning: Joachim Post, a board member at BMW AG overseeing Purchasing and Supplier Network, underscored the company’s balanced global procurement strategy. He highlighted the pivotal role Canada is playing in firming up a resilient battery cell supply chain for BMW in North America.
- Investments in the US: Oliver Zipse, BMW AG’s Board Chairman, revealed a significant $1.7 billion investment in the expansion of the US production facility in October 2022. Of this, $700 million is earmarked for erecting the new BMW assembly center in Woodruff, South Carolina. This center will chiefly produce high-voltage batteries for the all-electric BMW X models. The 93,000 sq. m. facility, in its first phase, is slated to churn out sixth-generation battery modules and will also pave the way for around 300 fresh job opportunities.
- Technological Advancements: BMW’s sixth-gen battery configuration promises a more than 20% boost in energy density. This translates to faster charging and an up to 30% hike in range. Additionally, the CO2 emissions during cell production will drop by up to 60% due to a dual-pronged approach: utilization of renewable energy and incorporation of secondary raw materials like lithium, cobalt, and nickel.
Bottom Line
BMW’s strategic regional focus on e-mobility in North America, underpinned by substantial investments and innovative technological advancements, signifies a significant step forward in the e-mobility landscape. The company’s initiatives not only cater to growing consumer demands for electric vehicles but also align with global sustainability goals.
