BMW orders ₹1.75 lakh crore batteries as electric vehicle demand grows – EQ Mag Pro
An aerial view shows the BMW Headquarters, ahead of the Munich Motor Show IAA Mobility 2021 in Munich, Germany.
BMW AG has boosted orders for batteries cells to keep pace with accelerating demand for electric cars that made up for more than 11% of deliveries during the half of the year.
The German carmaker now has contracts for more than 20 billion euros ($23.8 billion or ₹1.75 lakh crore) worth of batteries, up from 12 billion euros previously, Chief Executive Officer Oliver Zipse said in an interview.
The cells are destined for i4 sedans, iX sport utility vehicles and other models BMW is producing through 2024. The company plans to start switching to a new generation of batteries the following year.
“We’re following the market,” Zipse said. “The first half has shown that we’re growing and gaining market share. We’re right in the middle of electrification.”
Carmakers are reeling from a crippling shortage of semiconductors that’s put the industry on high alert to identify other vulnerabilities in their supply chains. Access to enough battery cells and raw materials like cobalt and nickel will be critical to established carmakers’ electric transformations. EV leader Tesla Inc. has gone so far as to clinch metal-supply deals with miners.
BMW’s increased cell orders are spread across China’s Contemporary Amperex Technology Co. Ltd. and EVE Energy Co Ltd., South Korea’s Samsung SDI Co. and Sweden’s Northvolt AB.
While BMW has readied a response to growing EV sales, it’s continued to be constrained by the dearth of semiconductors. Last month, the company predicted the situation would worsen through the end of the year.
Daimler AG’s chief executive officer cautioned that the global semiconductor shortage may not entirely go away next year and could take until 2023 to be resolved.
Ola Kallenius, CEO of the Mercedes-Benz maker, delivered the assessment during a briefing with reporters ahead of this week’s auto show in Munich. Daimler recently cut its annual sales forecast for its car division, projecting deliveries will be roughly in line with 2020, rather than up significantly.
Source: livemint
