BMW, China's CATL agree to $4.7 billion battery cell deal

Monday 09 July 2018 07:24 PM


Automotive News:
BMW plans to source 4 billion euros' ($4.7 billion) worth of battery cells from Chinese battery maker Contemporary Amperex Technology Ltd. over the next few years, the carmaker's purchasing chief said on Monday.

The long-term contract sees $1.76 billion in battery cells coming from a new CATL plant in Erfurt, Germany, Markus Duesmann said in Munich. The rest will come from China.

A contract for the construction of the new plant was due to be signed on Monday during a visit to Germany by China's Premier Li Keqiang.

There have been warnings that Europe's lack of its own production capabilities for the cells that power electric cars could leave its car industry exposed and too reliant on others.

Tesla founder Elon Musk has spoken about locating a battery 'Gigafactory' near the Franco-German border, in the vicinity of its Grohmann Engineering division.

Duesmann said BMW had invested in some of the costs for the CATL factory in Erfurt, but declined to say how much.

He said BMW was investing in cell research but a decision on whether to produce battery cells itself had not been made.