BMW Group signs new battery cell partnerships with Samsung SDI in Europe and LG Energy Solution in the US

The BMW Group is expanding its regional battery supply network, adding Samsung SDI as a supplier in Europe and LG Energy Solution in the United States for its sixth generation (Gen6) high-voltage batteries.

The two South Korean battery makers will supply the German automaker from their existing production facilities in the respective regions from the late 2020s, BMW said.

The move is part of BMW’s “local for local” sourcing strategy, which aims to bring suppliers closer to vehicle production sites, reduce transportation distances and strengthen supply chain security.

Battery cells are a key component of electric vehicles, influencing driving range and charging performance. BMW said it would combine regional sourcing with a diversified global supplier network to improve supply chain resilience and flexibility.

The expanded partnerships are also expected to support local value creation in Europe and the United States, as the automaker seeks to strengthen its regional production footprint.

“Diversifying procurement is an integral part of the BMW Group’s purchasing strategy,” said Nicolai Martin, BMW’s board member responsible for purchasing and supplier network.

The company aims to operate as locally as possible across its value chains while drawing on global procurement markets to maintain competitiveness across different regions, Martin said.