BMW Secures Umicore as Key Supplier for North American Battery Production
BMW is pushing forward with its electric mobility efforts, securing a critical supply agreement with Belgium-based Umicore for the manufacture of battery materials in North America.
Strengthening Regional Supply Chains
The German automotive giant announced on
Monday that Umicore, a global materials technology and recycling group, is set to provide cathode active materials essential for battery production to AESC. This supply will feed into the ongoing construction of a battery cell manufacturing facility by AESC in South Carolina, situated in close proximity to BMW's Spartanburg vehicle plant.
This strategic alignment marks BMW's commitment to enhancing its regional supply chain's resilience while scaling up electric mobility. By sourcing battery components near its production sites, BMW aims to streamline logistics and production.
Global Strategy for Localized Supply
Joachim Post, BMW's Chief Procurement Officer, emphasized the strategy behind the move. "We're implementing a balanced procurement approach globally," he explained. Part of this strategy is to procure components, particularly battery cells, from local sources in the key regions they operate, ensuring supply chain stability and efficiency.
The deal comes as part of a wider initiative in the automotive industry to make electric vehicles more accessible. In a related development, VW and Umicore recently disclosed plans for a new battery cathode production plant in Poland, underscoring the industry's push for more cost-effective electric vehicle production.
This move underscores a significant shift in the auto industry, with major players like BMW strategically securing materials to boost electric vehicle production, indicating a strong future for e-mobility.
