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Released August 03, 2020 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--German automaker BMW has signed a 2 billion-euro ($2.3 billion) deal for batteries for its big push into the electric vehicle (EV) market with Swedish battery cell manufacturer Northvolt.
The battery cells will be produced from 2024 at Northvolt Ett gigafactory, currently under construction in Skellefteå, in northern Sweden. Industrial Info is tracking the project--Europe's first large-scale lithium-ion battery factory--which was first announced in 2017 and is aiming to start large-scale manufacturing 2021. Annual capacity of 16 gigawatt-hours (GWh), or enough batteries for 250,000 cars, will ramp up to at least 32 GWh by 2024, with the potential to expand to 40 GWh in the future. Last year, Industrial Info reported that Northvolt received $1 billion in equity funding from a group led by Volkswagen (VW), Goldman Sachs and BMW to accelerate the construction of the plant. For additional information, see March 14, 2017, article - Europe Plans First Battery 'Gigafactory' and June 24, 2019, article - Europe's First Giant Battery Plant Gets Funding.
BMW is determined not to get left behind by the surge in interest and investment in EVs. It has already spent 10 billion euro ($11.7 billion) on battery cell contracts with China's CATL and Korea's Samsung SDI. It will have 25 electrified models--fully-electric vehicles and plug-in hybrids--in its lineup by 2023, with more than half of the 25 models fully electric. By 2021, electrified vehicles should make up a quarter of its new vehicle fleet, a third in 2025 and half of its sales in 2030.
"Northvolt is the third battery cell supplier we have partnered with, alongside our existing partners, CATL and Samsung SDI," explained Andreas Wendt, member of the board of management of BMW AG responsible for purchasing and supplier network. "Signing this contract is another step towards meeting our growing need for battery cells in the long term. We are systematically driving electrification of our vehicle fleet. By 2023, we aim to have 25 electrified models on the roads -- more than half of them fully-electric."
BMW Group will also source cells manufactured in Europe from the Chinese manufacturer CATL, from a plant under construction in Erfurt, Germany.
"To make an effective contribution to climate protection, we aim to improve our products' overall environmental balance--from resources to recycling," said Oliver Zipse, chairman of the board of management of BMW AG. "This applies in particular to energy-intensive production of high-voltage batteries for electric vehicles. That is why we now have a contractual agreement with our cell manufacturers that they will only use green power to produce our fifth-generation battery cells."
The European Union (EU) has set out ambitious plans to become a leading location for EV battery manufacture. In April, Industrial Info reported that the EU had approved a 480 million-euro ($522 million) loan to LG Chem Group for the construction of a new plant in Poland. The loan will cover around a third of the total project costs, estimated at 1.5 billion euro ($1.63 billion).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The battery cells will be produced from 2024 at Northvolt Ett gigafactory, currently under construction in Skellefteå, in northern Sweden. Industrial Info is tracking the project--Europe's first large-scale lithium-ion battery factory--which was first announced in 2017 and is aiming to start large-scale manufacturing 2021. Annual capacity of 16 gigawatt-hours (GWh), or enough batteries for 250,000 cars, will ramp up to at least 32 GWh by 2024, with the potential to expand to 40 GWh in the future. Last year, Industrial Info reported that Northvolt received $1 billion in equity funding from a group led by Volkswagen (VW), Goldman Sachs and BMW to accelerate the construction of the plant. For additional information, see March 14, 2017, article - Europe Plans First Battery 'Gigafactory' and June 24, 2019, article - Europe's First Giant Battery Plant Gets Funding.
BMW is determined not to get left behind by the surge in interest and investment in EVs. It has already spent 10 billion euro ($11.7 billion) on battery cell contracts with China's CATL and Korea's Samsung SDI. It will have 25 electrified models--fully-electric vehicles and plug-in hybrids--in its lineup by 2023, with more than half of the 25 models fully electric. By 2021, electrified vehicles should make up a quarter of its new vehicle fleet, a third in 2025 and half of its sales in 2030.
"Northvolt is the third battery cell supplier we have partnered with, alongside our existing partners, CATL and Samsung SDI," explained Andreas Wendt, member of the board of management of BMW AG responsible for purchasing and supplier network. "Signing this contract is another step towards meeting our growing need for battery cells in the long term. We are systematically driving electrification of our vehicle fleet. By 2023, we aim to have 25 electrified models on the roads -- more than half of them fully-electric."
BMW Group will also source cells manufactured in Europe from the Chinese manufacturer CATL, from a plant under construction in Erfurt, Germany.
"To make an effective contribution to climate protection, we aim to improve our products' overall environmental balance--from resources to recycling," said Oliver Zipse, chairman of the board of management of BMW AG. "This applies in particular to energy-intensive production of high-voltage batteries for electric vehicles. That is why we now have a contractual agreement with our cell manufacturers that they will only use green power to produce our fifth-generation battery cells."
The European Union (EU) has set out ambitious plans to become a leading location for EV battery manufacture. In April, Industrial Info reported that the EU had approved a 480 million-euro ($522 million) loan to LG Chem Group for the construction of a new plant in Poland. The loan will cover around a third of the total project costs, estimated at 1.5 billion euro ($1.63 billion).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
