BMW Group relies on regional supply chain to expand e-mobility in North America

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.

Belgian company Umicore has been recruited as a further partner for establishing a local supply chain in North America. Umicore will supply 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, 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.