LG Energy, Samsung SDI sign battery supply deal with BMW

SEOUL, Nov. 10 (Yonhap) -- LG Energy Solution Ltd. (LGES) and Samsung SDI Co. have signed agreements with BMW Group to supply high-voltage battery cells for its vehicles beginning in the late 2020s, the German automaker said Tuesday.

Under the agreements, LGES and Samsung SDI will supply sixth-generation (Gen6) battery cells manufactured at their respective production facilities in the United States and Europe, BMW said in a press release.

BMW didn't provide a specific timeframe for the planned deliveries.

BMW Group follows a "local for local" approach across its global supplier network, sourcing components as close as possible to its vehicle production facilities.

"Diversifying procurement is an integral part of the BMW Group's purchasing strategy. We aim to ensure our products' global competitiveness and to be successful in different markets," said Nicolai Martin, a member of the Board of Management of BMW AG, which is responsible for purchasing and managing supplier networks.

"To achieve this, we operate as locally as possible in our value chains, leveraging the potential of our global procurement markets. Through our battery cell partnerships, we are actively strengthening value creation in Europe and the U.S.," he added.

As a key component of electric vehicles (EVs), high-voltage batteries play a crucial role in determining vehicle performance, including driving range and charging speed.

kyongae.choi@yna.co.kr
(END)