Headline: BMW Accelerates Regional Battery Production in North America
BMW Embracing Regional Battery Production
In response to global supply challenges and to capitalize on local incentives, BMW is ramping up its commitment to electric mobility by focusing on regional supply chains. The company is adopting a “local for local” approach to source components like battery cells closer to its vehicle manufacturing sites and gradually localize raw material supplies.
Umicore Joins BMW for North American Supply Chain Expansion
Umicore, a Belgian company, has partnered with BMW to establish a local supply chain in North America. The collaboration involves supplying cathode active battery materials to BMW’s battery cell supplier, AESC, from a new facility in Ontario, Canada, strengthening regional supply chains for electric mobility.
BMW’s Investment in Battery Production Facilities in the US
BMW’s partner, AESC, is currently building a battery cell factory in Florence, South Carolina, with an initial capacity of 30 GWh/a for manufacturing cutting-edge cylindrical lithium-ion battery cells tailored for BMW’s sixth-generation eDrive technology. This plant will operate on renewable energy sources, in line with BMW’s sustainability goals.
BMW Expands US Production and Invests in Battery Module Facility
In a significant move, BMW announced a substantial investment of 1.7 billion US dollars to expand its production site in South Carolina. A new assembly center in Woodruff will be constructed with $700 million dedicated to producing high-voltage batteries for fully-electric BMW X models. This expansion will create around 300 job opportunities.
Advantages of the New Sixth-Generation Battery Technology
The upcoming sixth-generation battery format by BMW promises a remarkable 20% increase in energy density, up to 30% improvement in charging speed and range, and a significant reduction of up to 60% in CO2 emissions during cell production. These achievements are made possible through the use of renewable energy sources by cell suppliers and the integration of secondary materials in the production of raw materials.
Conclusion
BMW’s strategic shift towards regional battery production in North America signifies a pivotal step in fortifying its supply chains and fostering sustainable electric mobility. The company’s investments in advanced battery technologies and local manufacturing facilities underscore its dedication to innovation and environmental stewardship.
FAQ
1. Why is BMW focusing on regional battery production in North America?
BMW aims to minimize supply chain disruptions and leverage local incentives by adopting a “local for local” strategy in sourcing battery components and raw materials.
2. How will Umicore contribute to BMW’s North American supply chain?
Umicore will supply cathode active battery materials to BMW’s battery cell supplier, AESC, from a new facility in Ontario, Canada, strengthening regional supply chains for electric mobility.
3. What are the advantages of BMW’s sixth-generation battery technology?
The new battery technology offers a 20% boost in energy density, up to 30% improvement in charging speed and range, and a significant reduction of up to 60% in CO2 emissions during production, aligning with BMW’s sustainability goals.
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