BorgWarner join forces with Romeo Power Technology to offer battery modules and packs at a scale to automotive industry

BorgWarner announced in May its tie up with Romeo Power Technology - battery module and pack supplier founded in 2015 by a group of engineers from SpaceX, Tesla, and Samsung.

The latest deal, which is another step on a road to build complementary offers for EV manufacturers, consists of two elements

  • 20% equity investment in Romeo Power Technology and two seats on its board for BorgWarner
  • a new joint venture (60% BorgWarner / 40% Romeo Power Technology)

This way BorgWarner will be able to use its sales channels to "fill a gap in the marketplace between battery cell manufacturers and hybrid and electric vehicle customers".

Looking at the BorgWarner from a further perspective, we can notice that the company is picking up one by one all the elements related to electrified vehicles.

Initially, BorgWarner was known in EV world from eGearDrive single-speed transmissions. Then in 2015 company acquired electric motor manufacturer Remy International, and in 2017 power electronics company Sevcon, known from both on-board chargers and EV inverters. In February, 2019 BorgWarner acquired Rinehart Motion Systems and AM Racing and merged them into a new wholly-owned company, Cascadia Motion LLC to develop electric and hybrid propulsion solutions for niche and emerging applications. The most recent partnership with Romeo Power Technology brings the company closer to becoming a single-stop shop for EVs.

"BorgWarner believes bringing together BorgWarner’s customer, product launch and quality excellence with Romeo’s leading battery module and pack technology will meet a wide range of customers’ battery-electric vehicle needs. The battery modules and packs are expected to include intelligent battery management systems with proprietary algorithms for enhanced performance and cycle life, as well as proprietary thermal engineering for active and passive cooling. The addition of battery packs will energize BorgWarner’s existing product portfolio for hybrid and electric vehicles that includes electric motors, power electronics, high-voltage battery heaters, eAxle iDMs, onboard battery chargers and much more."

Joel Wiegert, President and General Manager BorgWarner Morse Systems said:

“This joint venture will not only complement our strong existing propulsion portfolio, but we expect it to fill a gap in the marketplace between battery cell manufacturers and hybrid and electric vehicle customers. We believe our global engineering and manufacturing footprint enables us to quickly commercialize cutting-edge technology, delivering even more value to our customers.”

Michael Patterson, Romeo Power Technology Founder and CEO said:

“This joint venture will help Romeo take a big step in the battery mobility sector by adding BorgWarner’s scale and resources. Romeo has a fantastic team that has accomplished a lot in the last four years. And now we’ll continue our progress, with the ability and resources to grow and accomplish our mission of advancing energy technology.”

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BorgWarner Announces New Joint Venture Which Will Add Battery Packs to its Broad Propulsion Portfolio

  • Agrees to form joint venture with Romeo Power Technology
  • Executes another significant step to solidify its propulsion systems leadership for combustion, hybrid and electric vehicles

Auburn Hills, Michigan, May 7, 2019 – With global expertise supplying combustion, hybrid and electric vehicle propulsion solutions, BorgWarner is continuing to build its electrification portfolio and systems expertise by agreeing to form a joint venture with Romeo Power Technology, a technology-leading battery module and pack supplier. This new joint venture will be split 60/40 with BorgWarner obtaining the larger share. 

“This joint venture will not only complement our strong existing propulsion portfolio, but we expect it to fill a gap in the marketplace between battery cell manufacturers and hybrid and electric vehicle customers,” said Joel Wiegert, President and General Manager BorgWarner Morse Systems.  “We believe our global engineering and manufacturing footprint enables us to quickly commercialize cutting-edge technology, delivering even more value to our customers.”

BorgWarner believes bringing together BorgWarner’s customer, product launch and quality excellence with Romeo’s leading battery module and pack technology will meet a wide range of customers’ battery-electric vehicle needs. The battery modules and packs are expected to include intelligent battery management systems with proprietary algorithms for enhanced performance and cycle life, as well as proprietary thermal engineering for active and passive cooling. The addition of battery packs will energize BorgWarner’s existing product portfolio for hybrid and electric vehicles that includes electric motors, power electronics, high-voltage battery heaters, eAxle iDMs, onboard battery chargers and much more.

“This joint venture will help Romeo take a big step in the battery mobility sector by adding BorgWarner’s scale and resources,” said Michael Patterson, Romeo Power Technology Founder and CEO. “Romeo has a fantastic team that has accomplished a lot in the last four years. And now we’ll continue our progress, with the ability and resources to grow and accomplish our mission of advancing energy technology.”

The joint venture will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles. BorgWarner will also take a 20 percent equity position in Romeo Power Technology and will fill two seats on its board. The equity investment and the joint venture are expected to close in the second quarter of 2019, subject to the satisfaction of customary closing conditions.                  

BorgWarner’s strategic acquisition of companies involved in vehicle electrification, to complement its organic efforts, started in 2015 with the acquisition of Remy International, Inc. (Remy), a leading manufacturer of rotating electrical components such as alternators, starter motors and electric traction motors for the automotive and commercial vehicle industry. In 2017, BorgWarner acquired Sevcon Inc., a global player in electrification technologies. Sevcon complemented BorgWarner’s power electronics capabilities and also added onboard charging to the portfolio. In February 2019, BorgWarner announced it formed Cascadia Motion and acquired two Oregon-based businesses, Rinehart Motion Systems LLC and AM Racing Inc. and merged their operations into a new, wholly owned company focused on electric and hybrid propulsion solutions for niche and emerging applications. These acquisitions, along with the joint venture announced today, are significant milestones as BorgWarner continues to execute its strategy as a propulsion systems leader for combustion, hybrid and electric vehicles.