BMW Inks $4.7 Billion Battery Contract With CATL

JUL 9 2018 BY MARK KANE 23

Reuters reports that BMW signed a huge deal for lithium-ion battery cells with CATL and it’s much bigger than earlier suggested.

BMW Concept iX3

The contract is worth €4 billion (€4.7 billion) and divides into two parts:

BMW will need batteries in both countries, as the upcoming iX3 is to be produced in China.

The other battery supplier for BMW is Samsung SDI and BMW says that if there will be a need, a third supplier could be added from a group of eight that the company is currently in talks with.

Hopefully soon we will learn more details officially.

“A contract for the construction of the new plant is due to be signed on Monday during a visit to Germany by China’s Premier Li Keqiang.”

“…BMW was investing in cell research but a decision on whether to produce battery cells itself had not been made.”

Source: Reuters

Categories: Battery Tech, BMW, China

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23 Comments on "BMW Inks $4.7 Billion Battery Contract With CATL"

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You left out an interesting detail:

“BMW is sourcing raw materials for the cells itself to pass to the battery makers, in particular cobalt, and is currently negotiating long-term contracts.

Duesmann said BMW would only conclude contracts where inhuman conditions and child labor were ruled out. It said it was not sourcing cobalt from mines in Democratic Republic of Congo.”

Sourcing responsibly is good. Flat out ruling out DRC, regardless of conditions in specific mines, is a cop out though.

It’s avoiding a high risk market. I see no problem in that.

It’s a problem for the local population losing income.

Avoiding sourcing from mines that use child labour, or that are used to finance war efforts, is a good thing. But avoiding sourcing from properly run mines too, is *not* a good thing.

These companies are stupid. They have the sales, but are now spinning off the manufacturing. Worse, China will require that ANY R&D that BMW comes up with, be turned over to them.
BMW is making a few extra bucks but that is only today. Long term, they will lose their ability to compete against Tesla, BYD, and others that are willing to invest into the production.

BYD is the only company you mentions who produces their own cells. BMW went with CATL in the same way Tesla went with Panasonic.

Nissan has AESC, they did not sell it.

And they are switching to LG battery cells next year…

The Leaf Plus will have LG.
“..expected to have a battery pack option..”

you might wish to re-examine what you are saying.
Tesla uses Panasonic for MS/MX. BUT, they have their own cell production going on, in which panasonic provides the machines and workers. BUT, the NV arrangement is a partnership, whereas BMW is simply a customer of CATL.

Panasonic produces the cells for all Tesla Models… The two share a building in NV…. Read the 10Q of Panasonic, it clearly explains the partnership.

Windbournw never heard of Panasonic apparently..

Do you know who makes all the cells for Tesla?


But Tesla keeps the cell chem IP.

And GM has their own cell chem IP that LG is using…

wrong. It is LG’s chemistry. GM is a pure customer of LG, nothing more.

Wrong again Windborne. GM contracts with LG to make their own chemistry… As do some of LG’s other customers

you obviously do not have a clue that Panasonic and Tesla are PARTNERS in the NV gigafactory.
There is a HUGE difference of being a CUSTOMER, which is what BMW is of CATL, and Tesla is of Panasonic for the MS/MX, but the M3 and all future cells will be partnership.

There is no legal partnership. Tesla leases space in the GF to Panasonic and buys cells from them. The lease/purchase agreement is attached to a Tesla 10-Q filed in 2015.

You have strong opinions, you need facts to back them.

windbourne has strong opinions and no facts, he’s never seen a 10-Q nor the understanding to read and interpret the data.

Nice, good to see another mainstream manufacturer make a sizable investment…

The location is no longer “expected” to be Erfurt: the source article makes it rather clear that it’s now official.

Another interesting tidbit from the source article: planned capacity is 14 GWh/year in 2022. Quite substantial.

(Bigger than any of the Korean investments in Poland and Hungary — though I guess they can scale up before 2022, too…)