BMW's joint venture BMW Brilliance Automotive, which is expanding its battery pack business, selected CATL as the long-term battery supplier.
The Chinese manufacturer will receive 2.8 billion yuan ($419.29 million) prepayment for battery products, while BMW's JV will have the right to participate in CATL’s future fundraising plans, up to 2.85 billion yuan ($427 million). The equity investment of such a size would translate to around 2% of CATL, so it's not a serious acquisition.
Other manufacturers, like Dongfeng Motor Group Co., SAIC Motor Corp. and Chongqing Changan Automobile Co., also made some minor equity investment in CATL.
CATL is expected to build a new 24 GWh battery plant in China, which comes on top of recently announced 14 GWh in Europe. In 2017 the company delivered nearly 12 GWh of batteries.
BMW placed an order for €4 billion (€4.7 billion) of BMW Brilliance Automotive ordered recently batteries for 815 million yuan ($121 million).