BMW places battery order worth USD 23.8 billion amid rising EV demand

By Nikita Chaurasia  | Date: 2021-09-07

BMW places battery order worth USD 23.8 billion amid rising EV demand
  • The automaker is planning to use these batteries in its upcoming EVs.
  • BMW had previously signed various battery cell contracts worth USD 14.2 billion.

Bayerische Motoren Werke (BMW) AG has increased the orders for battery cells owing to the rising demand for electric cars during the first half of 2021. According to reliable sources, around 11% of BMW’s deliveries, between January and June 2021, were for electric cars.

In this context, the Chief Executive Officer of BMW Oliver Zipse was quoted saying that the company had signed various battery cell contracts worth USD 14.2 billion, which has now been increased to USD 23.8 billion this year.

The automaker is planning to use these batteries in its upcoming iX sport utility vehicles, i4 sedans, and other models. Sources claimed that BMW also has plans to switch to a new generation of batteries from 2022.

BMW currently sources batteries from Swedish battery developer Northvolt AB, China-based Eve Energy Co. Ltd., Contemporary Amperex Technology Co. Ltd., and Samsung SDI Co. Ltd.

While the Munich-based automaker has made moves to secure a higher number of batteries to prepare for surging EV sales, its sales and production are likely to be adversely affected due to the global semiconductor shortage.

Experts believe that sustainable access to raw materials such as cobalt and nickel is of prime importance along with battery cells to aid established automakers in launching electric vehicles and shifting to environment-friendly mobility options.

In related news, the Chief Financial Officer at BMW Nicolas Peter was quoted saying that car sales in China are expected to rise in 2022 owing to surging demand for premium cars and rising disposable incomes.

It is worth noting however that car sales in China have witnessed a substantial drop due to a domestic shortage of semiconductors, high occurrence of floods, and the spread of COVID-19. Despite this, BMW AG managed to record a 12% jump in sales between April and June 2021.

Source Credits—

 https://auto.hindustantimes.com/

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

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