BMW Power Distribution Equilibrium
BMW, the German automobile manufacturer, has embarked on a significant journey towards electric vehicle (EV) production, with numerous strategic moves and partnerships in place.
In 2020, the company formed a joint venture with Great Wall Motor (GWM) in Zhangjiagang, China, worth €650 million. This collaboration aims to produce future fully electric vehicles under the Mini brand.
To power these electric cars, BMW has partnered with Samsung SDI and China's Contemporary Amperex Technology (CATL) for cell supply. The company also sources lithium directly from mines, including from Australia.
BMW currently holds a 6% share of the market for new registered battery electric and photovoltaic electric vehicles. However, the company has ambitious plans to increase this share, aiming to capture between 15-20% of the market by 2025.
The company's EV production strategy includes the use of its own battery factories. BMW has three such factories globally: in Dingolfing, Germany; Spartanburg, USA; and Shenyang, China. These battery factories supply the local assembly plants.
Notable EVs produced by BMW include the fully electric iX3, which went into production in Shenyang in 2020, and the BMW iNext, scheduled for production at the Dingolfing plant in Germany in 2021. By 2025, BMW Group aims to offer five fully electric vehicles.
The BMW i4 will start production at its plant in Munich in 2021, and by 2021, BMW aims to have 1 million fully electric and hybrid cars on the road.
In a move to ensure a sustainable supply chain, BMW has signed long-term contracts with both CATL and Samsung SDI. BMW also formed a technology consortium with battery developer Northvolt and Umicore in 2018 to develop a sustainable value chain for batteries in Europe.
CATL is building a plant in Erfurt, Germany for European supply, which will be the most modern battery cell production facility in the world. In November 2019, BMW extended its contract with CATL, increasing the order value from €4 billion to €7.3 billion.
BMW is also sourcing the cobalt used for cell production directly from mines in Australia and Morocco. The company plans to make its fifth-generation electric drive trains entirely without using rare earths from 2021.
In addition, BMW signed a deal with China's Great Wall Motor to build a €650m joint venture plant in Zhangjiagang that will make future fully electric volumes of its Mini brand. In 2020, BMW began production of the fully electric Mini at its Oxford plant in the UK.
With its global investments, strategic partnerships, and commitment to sustainability, BMW is positioning itself as a leader in the electric vehicle market. The company's access to the best technology for battery cells, due to its lead position in the global market for EV production, further cements this position.
Read also:
- Mural at blast site in CDMX commemorates Alicia Matías, sacrificing life for granddaughter's safety
- Comcast Introduces Sports-Oriented Video Bundle in Preparation for the World Cup Tournament
- AI-Powered Transportation Stock's Possible Challenge to Tesla's Autonomous Dreams?
- Ford Incorporates Silicon Valley-esque Innovation in Economical Mid-Size Truck and Shared Platform Strategy
