BMW has increased orders for battery cells to keep up with competitors in the burgeoning EV market, which accounted for over 11% of shipments during the first half of the year.
The German automaker has won more than € 20 billion ($ 23.8 billion) of battery supply contracts, CEO Oliver Zipse said in an interview. Orders were received by Chinese companies Contemporary Amperex Technology Co. Ltd. and EVE Energy Co Ltd., South Korean Samsung SDI Co., and Swedish Northvolt AB.
These batteries are for the i4 sedans, iX crossovers, and other models that BMW will produce until 2024. The company plans to begin transitioning to next-generation batteries next year.
We monitor the market. The first half of the year showed that we are growing and increasing our market share. We are in the process of electrification. - Oliver Zipse
Automakers suffer from a shortage of semiconductors. Access to sufficient battery cells and raw materials such as cobalt and nickel will be critical. The electric vehicle market leader Tesla has even made deals with mining companies to supply metal.