To Supply Battery Cells Exclusively to BMW

Lee Jae-yong (right), chairman of Samsung Electronics, poses for a photo with BMW chairman Oliver Zipse after examining BMW’s New i7 electric vehicle powered by Samsung SDI’s P5 battery cells, at the BMW Driving Center in Yeongjong-do, Incheon on Dec. 17, 2022.

Samsung SDI is reportedly considering building an electric vehicle (EV) battery joint venture with BMW, its largest customer, in Hungary. The report came about one month after Samsung Electronics chairman Lee Jae-yong discussed cooperation with BMW chairman Oliver Zipse in December 2022.

Samsung SDI is considering building a third plant in Göd, Hungary, near its Plants 1 and 2.

Sources say that the third plant is highly likely to produce battery cells exclusively for BMW. Currently, BMW is building a battery assembly plant at its vehicle production plant in Debrecen, Hungary, by investing more than two billion euros. The new plant will assemble cylindrical battery cells for BMW’s electric vehicle platform Neue Klasse.

Samsung SDI completed a 30GWh battery plant in Göd, Hungary in 2017 to target the European electric vehicle market, and later invested 1 trillion won to build the second plant in the same area. If the third plant is built with a similar capacity as the existing ones, Samsung SDI’s investment is expected to top one trillion won.

Since Samsung started a joint electric vehicle development project with BMW in 2009, it has continued cooperation for 13 years. Chairman Lee has communicated with the BMW management from the early stage of cooperation and built a trusting relationship with them.

On Dec. 17, 2022, Lee met with BMW chairman Zipse at the BMW Driving Center on Yeongjong Island, Incheon, to discuss strengthening cooperation between the two companies in the mobility business. At the time, Lee reportedly suggested strengthening cooperation by introducing Samsung SDI’s latest cylindrical EV battery P5 to BMW executives, including Zipse. BMW plans to use sixth-generation cylindrical battery cells for vehicles to be produced on the next-generation EV platform Neue Klasse. The 6th-generation BMW cylindrical battery cells will come in two heights, with one single diameter of 46 mm. They have more nickel instead of reduced cobalt in their cathode materials.

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