Local for local: BMW Group relies on regional supply chain to expand e-mobility in North America
- Phil DiIanni
- Local battery cell supply for US vehicle production
- Cathode raw material manufactured in Canada
- AESC and Umicore as strong partners in North America
- Board of Management Member Joachim Post: “We pursue a globally balanced procurement strategy”
Munich, Germany - October 16, 2023... The BMW Group is accelerating its ramp-up of e-mobility and increasingly relying on regional supply chains, in line with the principle “local for local”. The company aims to source components like battery cells close to vehicle production and gradually localise the supply chain for primary materials.
New partner to supply primary material for battery cell production
Belgian company Umicore has now been recruited as a further partner for establishing a local supply chain in North America. Umicore will supply our battery cell supplier AESC with cathode active battery materials from a new plant in Ontario, Canada. This is an important step in strengthening the BMW Group's regional supply chains and securing the ramp-up of e-mobility.
In accordance with the “local for local” principle, our partner AESC is currently building a battery cell factory in Florence, South Carolina. With an initial capacity of 30 GWh/a, the facility will produce the innovative cylindrical lithium-ion battery cells specifically developed for the sixth generation of BMW eDrive technology. Electricity for production of the battery cells and cathode raw material will come exclusively from renewable sources.
“The BMW Group pursues a globally balanced procurement strategy in the three main geographical regions of the world. Our battery cell supplier in the US will source key primary materials from Canada going forward. We are pleased that Canada is playing a strong role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.
Further BMW Group investment in South Carolina
Oliver Zipse, Chairman of the Board of Management of BMW AG, already announced an extensive investment of 1.7 billion US dollars in expansion of the US production site back in October 2022. This includes 700 million US dollars to build the BMW Group’s new assembly centre in Woodruff, which will provide high-voltage batteries for the fully-electric BMW X models in the future. In the initial phase, the roughly 93,000 sq. m. facility will produce sixth-generation battery modules. The assembly centre will also create about 300 new jobs.
Sixth-generation battery cell technology for better performance and sustainability
The new sixth-generation battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent. At the same time, CO2 emissions from cell production will be reduced by up to 60 percent: on the one hand, by cell suppliers relying on energy from renewable resources; on the other, by using a percentage of secondary material for the raw materials lithium, cobalt and nickel.
BMW Group in the United States.
BMW of North America, LLC was established 50 years ago to support the sales, marketing and distribution of BMW automobiles in the U.S. BMW Motorrad was brought into the fold in 1980. In 1993 BMW Group Financial Services NA, LLC was founded, and one year later BMW Manufacturing Co., LLC began assembling vehicles in South Carolina. In 2002 and 2003, BMW Group established MINI USA, and Rolls-Royce Motor Cars NA, LLC relaunching two iconic brands and rounding out its product portfolio.
Today, the BMW Group has a nationwide corporate footprint in the U.S. which consists of nearly 30 locations in 12 different states. Beyond the National Sales Company and Financial Services headquarters in Woodcliff Lake, NJ, its manufacturing plant in Spartanburg, South Carolina, and numerous other operational facilities, BMW Group in the U.S. also includes Designworks, a strategic design consultancy in Santa Monica, CA, BMW Group Technology Office USA, a technology research and development center in Silicon Valley, and BMW i Ventures, a venture capital fund, also in Silicon Valley.
BMW Group Plant Spartanburg is the largest single BMW production facility in the world, and the global center of competence for BMW Sports Activity Vehicles including the X3, X4, X5, X6, X7, and XM. The plant assembles more than 1,500 vehicles each day, and up to 450,000 annually. Since 1994, Plant Spartanburg has assembled nearly 7 million BMW vehicles in the U.S.
The BMW Group sales organization in the U.S. is represented through a network of 350 BMW retailers, 144 BMW motorcycle retailers, 105 MINI passenger car dealers, and 38 Rolls-Royce Motor Car dealers. The company’s activities provide and support over 120,000 jobs across the U.S. and contribute more than 43.3 billion to the U.S. economy annually.
Journalist note: Information about BMW Group and its products in the USA is available to journalists on-line at www.bmwusanews.com www.miniusanews.com and www.press.bmwna.com
New partner to supply primary material for battery cell production
Belgian company Umicore has now been recruited as a further partner for establishing a local supply chain in North America. Umicore will supply our battery cell supplier AESC with cathode active battery materials from a new plant in Ontario, Canada. This is an important step in strengthening the BMW Group's regional supply chains and securing the ramp-up of e-mobility.
In accordance with the “local for local” principle, our partner AESC is currently building a battery cell factory in Florence, South Carolina. With an initial capacity of 30 GWh/a, the facility will produce the innovative cylindrical lithium-ion battery cells specifically developed for the sixth generation of BMW eDrive technology. Electricity for production of the battery cells and cathode raw material will come exclusively from renewable sources.
“The BMW Group pursues a globally balanced procurement strategy in the three main geographical regions of the world. Our battery cell supplier in the US will source key primary materials from Canada going forward. We are pleased that Canada is playing a strong role in establishing a robust and efficient battery cell supply chain for the BMW Group in North America,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.
Further BMW Group investment in South Carolina
Oliver Zipse, Chairman of the Board of Management of BMW AG, already announced an extensive investment of 1.7 billion US dollars in expansion of the US production site back in October 2022. This includes 700 million US dollars to build the BMW Group’s new assembly centre in Woodruff, which will provide high-voltage batteries for the fully-electric BMW X models in the future. In the initial phase, the roughly 93,000 sq. m. facility will produce sixth-generation battery modules. The assembly centre will also create about 300 new jobs.
Sixth-generation battery cell technology for better performance and sustainability
The new sixth-generation battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent. At the same time, CO2 emissions from cell production will be reduced by up to 60 percent: on the one hand, by cell suppliers relying on energy from renewable resources; on the other, by using a percentage of secondary material for the raw materials lithium, cobalt and nickel.
BMW Group in the United States.
BMW of North America, LLC was established 50 years ago to support the sales, marketing and distribution of BMW automobiles in the U.S. BMW Motorrad was brought into the fold in 1980. In 1993 BMW Group Financial Services NA, LLC was founded, and one year later BMW Manufacturing Co., LLC began assembling vehicles in South Carolina. In 2002 and 2003, BMW Group established MINI USA, and Rolls-Royce Motor Cars NA, LLC relaunching two iconic brands and rounding out its product portfolio.
Today, the BMW Group has a nationwide corporate footprint in the U.S. which consists of nearly 30 locations in 12 different states. Beyond the National Sales Company and Financial Services headquarters in Woodcliff Lake, NJ, its manufacturing plant in Spartanburg, South Carolina, and numerous other operational facilities, BMW Group in the U.S. also includes Designworks, a strategic design consultancy in Santa Monica, CA, BMW Group Technology Office USA, a technology research and development center in Silicon Valley, and BMW i Ventures, a venture capital fund, also in Silicon Valley.
BMW Group Plant Spartanburg is the largest single BMW production facility in the world, and the global center of competence for BMW Sports Activity Vehicles including the X3, X4, X5, X6, X7, and XM. The plant assembles more than 1,500 vehicles each day, and up to 450,000 annually. Since 1994, Plant Spartanburg has assembled nearly 7 million BMW vehicles in the U.S.
The BMW Group sales organization in the U.S. is represented through a network of 350 BMW retailers, 144 BMW motorcycle retailers, 105 MINI passenger car dealers, and 38 Rolls-Royce Motor Car dealers. The company’s activities provide and support over 120,000 jobs across the U.S. and contribute more than 43.3 billion to the U.S. economy annually.
Journalist note: Information about BMW Group and its products in the USA is available to journalists on-line at www.bmwusanews.com www.miniusanews.com and www.press.bmwna.com