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BMW Group announced on Nov. 10 that it had selected Samsung SDI and LG Energy Solution as additional suppliers of high-voltage battery cells and signed supply agreements with the two companies. /Courtesy of BMW Group

BMW Group has selected Samsung SDI and LG Energy Solution as additional suppliers of high-voltage battery cells and signed supply agreements with the two South Korean companies.

The agreements will further strengthen BMW's partnerships with Korean battery manufacturers while expanding efforts to localize and diversify its global supply chain.

According to BMW Group on Tuesday, Samsung SDI will supply high-voltage battery cells from its production facilities in Europe, while LG Energy Solution will supply cells from its facilities in the United States, beginning in the late 2020s.

High-voltage batteries are essential components of electric vehicles, determining key performance characteristics such as driving range and charging capabilities.

BMW Group sources battery cells from world-leading manufacturers, combining regional supply chains with a diversified global supplier network.

The new agreements reflect BMW Group's "local for local" principle, which it applies throughout its global supply chain.

Under this strategy, the company seeks to source components as close as possible to its vehicle production facilities.

The approach aims to support regional economies in key markets, including Europe, Asia and North America, while shortening transportation distances and improving supply security.

"Diversifying procurement is an integral part of BMW Group's purchasing strategy," said Nicolai Martin, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

"We aim to strengthen the competitiveness of our products and succeed in different markets by leveraging global procurement opportunities while promoting localization throughout our value chain."

Hendrik Lang, Head of Purchasing and Quality of High-Voltage Batteries at BMW Group, said, "By working with leading battery cell manufacturers around the world, we are securing a stable and competitive supply while maintaining the flexibility to respond to market changes."

                                                                                                                Kim A-yoon