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MUNICH, 18 October 2023: BMW Group is taking significant steps to accelerate its e-mobility expansion, with a keen focus on regional supply chains following the “local for local” principle. By sourcing essential components, like battery cells, in proximity to vehicle production, the company is boosting its commitment to sustainability. This article delves into BMW’s strategy of creating a strong regional supply chain and its partnership with Belgian company Umicore.
Strengthening Local Supply Chains
BMW Group is intensifying its commitment to e-mobility by establishing strong regional supply chains. This approach aims to streamline the procurement of essential components and reinforce the principle of “local for local.” The company is dedicated to sourcing battery cells, one of the vital elements in electric vehicles, in close proximity to its production facilities. This strategy not only enhances the efficiency of production but also aligns with BMW’s commitment to sustainable practices.
Umicore Joins as a Key Partner
In a significant move towards establishing a local supply chain in North America, BMW has partnered with Belgian company Umicore. Umicore will supply cathode active battery materials to former’s battery cell supplier, AESC. The materials will originate from a new production plant in Ontario, Canada. This strategic partnership is a crucial step in strengthening BMW Group’s regional supply chains and ensuring a seamless transition towards e-mobility.
Sustainability in E-Mobility
Embracing sustainability is at the core of BMW’s e-mobility strategy. AESC, BMW’s battery cell supplier, is actively building a battery cell factory in Florence, South Carolina. This facility will produce cutting-edge cylindrical lithium-ion battery cells developed for the sixth generation of formers eDrive technology. Notably, the production process will rely exclusively on renewable energy sources, aligning with the company’s commitment to reducing its carbon footprint and promoting sustainability.
Advancing E-Mobility with Local Supply Chains
BMW’s regional supply chain strategy is propelling the transition to e-mobility in North America. Through strategic partnerships and a strong focus on sustainability, the company is setting the stage for a future powered by electric vehicles. With a commitment to procuring primary materials locally and producing batteries with minimal environmental impact, it is at the forefront of creating cleaner, more efficient, and eco-friendly transportation solutions.
As BMW continues to invest in its production facilities in the United States, including the creation of high-voltage batteries and sixth-generation battery modules, it is contributing to job creation and driving the growth of the e-mobility sector. The company’s dedication to regional supply chains and sustainability underscores its role as a leader in the global shift towards cleaner and more sustainable transportation.
