BMW is expanding its battery cell supplier network for the Neue Klasse electric vehicle range, adding Samsung SDI in Europe and LG Energy Solution (LGES) in the United States. Deliveries of the sixth-generation (Gen6) battery cells are expected to begin toward the end of the 2020s.
The new partnerships support BMW’s regional sourcing strategy, under which battery components are supplied from locations close to vehicle and battery production facilities. The approach is intended to reduce transport distances, strengthen regional manufacturing and improve supply security.
Nicolai Martin, BMW board member responsible for purchasing and supplier networks, said supplier diversification remains central to the company’s procurement strategy.
Three Battery Suppliers for Europe
With the addition of Samsung SDI, BMW will have three battery cell suppliers in Europe: CATL, EVE Energy and Samsung SDI. LGES will supply the US market.
The suppliers are expected to manufacture cells close to BMW’s battery assembly and vehicle production facilities.
CATL is expanding its operations in Debrecen, Hungary, alongside its existing factory in Arnstadt, Germany. EVE Energy has also established a cell production facility near BMW’s Debrecen vehicle plant.
Samsung SDI already operates a battery factory in Göd, Hungary. Although BMW has not disclosed the specific production location or cell format covered by the new agreement, the partnership expands the company’s existing European manufacturing options.
In the United States, LGES already operates several battery production facilities, providing a regional supply base for BMW’s electric vehicle operations.
Regional Battery Assembly for Neue Klasse
BMW is also establishing five battery assembly locations near its vehicle production facilities. These are planned for Irlbach-Straßkirchen in Germany, Debrecen in Hungary, Shenyang in China, Woodruff in the United States and San Luis Potosí in Mexico.
The regional network is designed to connect battery cell production, high-voltage battery assembly and vehicle manufacturing more closely.
Gen6 Batteries to Use Multiple Chemistries
BMW’s Gen6 battery technology is based on large cylindrical cells measuring 46 millimetres in diameter, with heights of 95 or 120 millimetres.
Compared with the previous generation of prismatic nickel-manganese-cobalt (NMC) cells, BMW expects the new design to increase energy density by approximately 20%.
The cells are integrated directly into the battery pack through a cell-to-pack architecture. The battery housing also becomes part of the vehicle structure through BMW’s pack-to-open-body approach.
The Neue Klasse lineup will not be limited to NMC chemistry. BMW CEO Milan Nedeljković confirmed during the company’s third-quarter earnings call that lithium iron phosphate (LFP) batteries will also be introduced.
BMW does not plan to replace NMC batteries entirely. Instead, the company will select battery chemistry according to vehicle segment and intended use, balancing cost, range and performance requirements.
BMW has not specified which cell chemistries Samsung SDI and LGES will supply under the new agreements.
BMW Expands In-House Battery Development
Alongside external partnerships, BMW continues to invest in its own battery research and manufacturing capabilities.
The company established its Battery Cell Competence Center in Munich in 2019 to develop battery technologies. Its Cell Manufacturing Competence Center in Parsdorf, opened in 2022, focuses on near-series production processes.
Since 2024, the Cell Recycling Competence Center in Salching has also been developing direct recycling methods to recover valuable materials and return them to battery production.
BMW says building regional battery supply chains requires long-term investment, industrial infrastructure and stable regulatory conditions. The expanded supplier network is intended to support those requirements as production of the Neue Klasse range increases.