BMW's Distribution of Power
BMW is making significant strides in its electric vehicle (EV) strategy, aiming to increase its market share and promote sustainability. The automaker has formed several partnerships and initiated various projects to achieve its goals.
The joint venture, named Spotlight Automotive, is one such partnership. BMW has teamed up with battery developer Northvolt and Umicore to develop a sustainable value chain for batteries in Europe. This collaboration is part of BMW's commitment to creating a more environmentally friendly EV industry.
BMW currently holds a 6% share of the market for new registered battery electric and photovoltaic electric vehicles. However, the company aims to significantly increase this figure, with a target of having a share between 15-20% by 2025.
To support this growth, BMW has signed long-term supply contracts with key partners. One such contract, worth €2.9 billion, is with Samsung SDI for its fifth-generation electric drivetrains. Another significant partnership is with China's Great Wall Motor, with whom BMW has agreed to build a €650m joint venture plant in Zhangjiagang for future fully electric volumes of its Mini brand.
Production of BMW's electric vehicles is set to ramp up in the coming years. The BMW iNext will be built at the Dingolfing plant in Germany in 2021, while the BMW i4 will start production at its plant in Munich in the same year. The fully electric iX3 will go into production in Shenyang in 2020.
BMW is also focusing on local production of batteries to minimize transport of lithium-ion batteries. The company operates three battery factories globally: in Dingolfing, Germany; Spartanburg, USA; and Shenyang, China.
In addition to production, BMW is also focusing on recycling. The Battery Cell Competence Centre aims to build toward a recycling rate in excess of 90%. BMW is not sourcing cobalt from the Democratic Republic of the Congo due to the risk of human rights violations and is sourcing cobalt and lithium directly from mines in Australia and Morocco for cell production.
BMW is also a member of the Global Battery Alliance, aimed at ending child labour, hazardous working conditions, pollution, and environmental damage in the global battery supply chain.
By 2021, BMW expects to have 1 million fully electric and hybrid vehicles on the road. By 2023, BMW plans to offer 25 electrified models, more than half of which will be fully electric. This ambitious plan underscores BMW's commitment to a sustainable future in the automotive industry.
In conclusion, BMW's electric vehicle strategy is multi-faceted, focusing on production, supply, and recycling. The company's partnerships, local production, and commitment to sustainability are key components of its strategy to increase its market share and promote a more environmentally friendly industry.
