Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Suppliers Email this story   Print this story
 
BMW signs $4.7 billion contract with CATL for battery cells
Reuters | 2018/7/10

MUNICH -- BMW plans to source 4 billion euros' ($4.7 billion) worth of battery cells from Chinese battery maker Contemporary Amperex Technology Ltd. over the next few years.

The long-term contract sees 1.5 billion euros' worth of battery cells coming from a new CATL plant in Erfurt, in the eastern German state of Thuringia, Markus Duesmann, BMWs head of purchasing, said in Munich. The rest will come from China.

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.

There have been warnings that Europe's lack of production capabilities for the cells that power electric vehicles could leave its car industry exposed and too reliant on others.

Tesla founder Elon Musk has explored building a battery 'Gigafactory' near the Franco-German border, in the vicinity of its Grohmann Engineering division.

Duesmann said BMW will invest in the CATL factory in Erfurt, but declined to say how much.

He said BMW was investing in battery cell research but a decision on whether to produce battery cells had not been made.

"I don't rule it out," he said.

BMW is "very comfortable" with its two battery cell suppliers, but could add a third and is in talks with eight manufacturers, Duesmann added.

He said he would welcome other carmakers who also wanted to invest in the Erfurt plant.

However, BMW has no plans to jointly purchase battery cells with rival Daimler, he said, because of the competitive advantage that can be gained if batteries provide greater range or can be charged faster.

Daimler said its strategy was to buy components where they are produced. "We welcome the decision of CATL to manufacture in Germany and are in talks regarding this," a Daimler spokesman said.

BMW is sourcing raw material, notably cobalt, for the battery cells independently to pass along to the battery makers and is currently negotiating long-term contracts.

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

Related Stories
  • CATL, Honda cooperate on EV battery development
  •     --Published:2019/8/2
     
  • Evergrande Health takes 1.06B yuan stake in Chinese auto battery maker
  •     --Published:2019/29/1
     
  • Germany backs r&d center for EV battery technology to rival Asia producers
  •     --Published:2019/25/1
     
  • CATL plans battery cell output of 60 GWh at German plant
  •     --Published:2019/25/1
     
  • Toyota, Panasonic plan EV battery venture to challenge Chinese rivals, source says
  •     --Published:2019/22/1
     
  • LG Chem to spend $1.07B to expand battery plants in China
  •     --Published:2019/15/1
     
  • BMW's December China sales growth outpaces Audi, Mercedes-Benz
  •     --Published:2019/15/1
     
  • Inside the race for next-generation EV battery supremacy
  •     --Published:2019/8/1
     
  • LG, Samsung take heart as China flags more open car battery market
  •     --Published:2018/21/12
     
  • BMW maintains double-digit growth behind locally built X3
  •     --Published:2018/21/12
     
  • BMW launches ride-hailing in Chengdu
  •     --Published:2018/18/12
     
  • BMW to offer ride-hailing services
  •     --Published:2018/23/11
     
  • BMW's sales advance but trail luxury rivals through first 10 months
  •     --Published:2018/20/11
     
  • BMW eyes more crossover output to avoid tariff
  •     --Published:2018/9/11
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291