BMW agreed to spend billions of euros increasing its orders of Samsung batteries as the world’s largest maker of luxury cars expands its line of electric vehicles.
BMW is planning to increase its purchases of SDI battery cells for the electric i3 city car and the plug-in hybrid i8 sports car as well as for “additional hybrid models” in the coming years.
“The battery is a key component in every electric vehicle—since it basically determines the range and performance capabilities of the car,” Klaus Draeger, BMW’s purchasing chief, said in the statement. “In Samsung SDI, we have chosen a supplier that offers us the best-available technology with future-oriented Korean battery expertise.”
The deal paves the way for BMW to secure supply of batteries—the most expensive part of an electric vehicle—as it rolls out the i8 and i3 to counter inroads by Tesla Motors into the luxury-car segment. For Samsung SDI, which supplies batteries to Apple Inc., the order builds on the company’s plans to expand its automotive business months after agreeing to acquire Cheil Industries Inc. for $3.4 billion to add its chemicals and materials expertise.
BMW plans to add more models as part of its electric “i” sub-brand, Ian Robertson, BMW’s head of sales and marketing, said last month, as the company started deliveries of the i8.
“We spent a lot of money on this and are definitely thinking long term,” Robertson said. “There are going to be others in the BMW i lineup.”
The supply deal is worth “multi billions of euros,” Gyeonggi, South Korea-based Samsung SDI said in a separate statement, without giving details such as the exact value. A battery can account for as much as 40 percent of an electric vehicle’s manufacturing cost, Samsung SDI’s spokesman David Kim said by phone. BMW’s i3 starts at $41,350.
Sales of hybrids and electric vehicles are projected to grow steadily to reach 5.2 million units by 2020, or 7.3 percent of all passenger vehicles, according to a November 2010 report by J.D. Power & Associates. BMW said it sold 5,400 i3 cars in the first half of 2014 and demand for the i8 is “significantly higher” than initial production plans.
According to Japanese research firm B3, the global market for automotive lithium-ion batteries will increase to $21.3 billion in 2020 from $4.4 billion in 2014.
SOURCE: Roy Wasson's Renewable Energy Fund Weekly Update #423
BMW is planning to increase its purchases of SDI battery cells for the electric i3 city car and the plug-in hybrid i8 sports car as well as for “additional hybrid models” in the coming years.
“The battery is a key component in every electric vehicle—since it basically determines the range and performance capabilities of the car,” Klaus Draeger, BMW’s purchasing chief, said in the statement. “In Samsung SDI, we have chosen a supplier that offers us the best-available technology with future-oriented Korean battery expertise.”
The deal paves the way for BMW to secure supply of batteries—the most expensive part of an electric vehicle—as it rolls out the i8 and i3 to counter inroads by Tesla Motors into the luxury-car segment. For Samsung SDI, which supplies batteries to Apple Inc., the order builds on the company’s plans to expand its automotive business months after agreeing to acquire Cheil Industries Inc. for $3.4 billion to add its chemicals and materials expertise.
BMW plans to add more models as part of its electric “i” sub-brand, Ian Robertson, BMW’s head of sales and marketing, said last month, as the company started deliveries of the i8.
“We spent a lot of money on this and are definitely thinking long term,” Robertson said. “There are going to be others in the BMW i lineup.”
The supply deal is worth “multi billions of euros,” Gyeonggi, South Korea-based Samsung SDI said in a separate statement, without giving details such as the exact value. A battery can account for as much as 40 percent of an electric vehicle’s manufacturing cost, Samsung SDI’s spokesman David Kim said by phone. BMW’s i3 starts at $41,350.
Sales of hybrids and electric vehicles are projected to grow steadily to reach 5.2 million units by 2020, or 7.3 percent of all passenger vehicles, according to a November 2010 report by J.D. Power & Associates. BMW said it sold 5,400 i3 cars in the first half of 2014 and demand for the i8 is “significantly higher” than initial production plans.
According to Japanese research firm B3, the global market for automotive lithium-ion batteries will increase to $21.3 billion in 2020 from $4.4 billion in 2014.
SOURCE: Roy Wasson's Renewable Energy Fund Weekly Update #423
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