BMW has declared its plans to make electric versions of all its most well-liked vehicles, apart from the high-end EVs such as the all-electric forthcoming i4 sedan. All of these vehicles will require batteries, and the firm has just signed a deal to safeguard its supply from makers Samsung SDI and Contemporary Amperex Technology Co. Limited (CATL).
You might not have heard of CATL, but the firm from China is the 3rd-largest provider of EV batteries in the world and also provides e-bike makers such as BYD and electronics makers such as Panasonic. BMW Group will hike its order from CATL from $4.43 Billion (four billion euros) declared previous year to $8.09 Billion (7.3 billion euros) for a deal starting from 2020 to 2031.
Apart from all this, BMW has inked a deal to buy electric drive trains $3.21 Billion (2.9 billion euros) from Samsung SDI for, operating from 2021 to 2031.
Locking a supply of batteries is no tiny task for an automotive firm, owing to restricted supplies of the rare components needed for the production process. That is why Ford will only be creating a restricted number of its Mustang Mach-E cars.
BMW declared that it will deal with the rare element problem by squarely sourcing its own lithium and cobalt from mines in Morocco and Australia, then supplying the components to Samsung SDI and CATL. The firm claims it is taking this action so it can be certain where its substances arrive from, so as to obey with environmental rules and honor the miners’ human rights.
By the beginning of 2021, the firm aims to coagulate its battery supply chain by lowering its reliance on these rare components, with the 5th-generation electric drive trains created without the employment of rare earth metals.
From initially working as a freelance to test his writing skills to being a full-fledged Content Writer, Harry Cabana has earned a vital place in our team. He has become a pro in writing articles and blogs relating to the world of business. Harry holds the responsibility to write about all comprising, and not restricted to, mergers & acquisitions, recent trends, agreements & deals, events, and much more. In free time, Harry likes to spend some time with elderly people and learn new things from their life experiences.