BMW Inks $4.7 Billion Battery Contract With CATL

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:

• €1.5 billion from German plant (expected in the city of Erfurt in Thuringia, Germany)
• €2.5 billion from Chinese plants

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.

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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