BMW's Power Equilibrium
BMW Embraces Electric Future with Global Strategy
BMW is making significant strides in the stock market today, with plans to increase its presence and market share over the next few years.
In 2019, the Mini brand, under BMW's umbrella, began production of the fully electric Mini at its Oxford plant in the UK. This move marked a significant step for BMW in its transition to a more sustainable future.
BMW's commitment to electric vehicles is further evident in its long-term supply contracts. In November 2019, the company signed a contract with Samsung SDI for its fifth-generation electric drivetrains and extended its partnership with both Samsung SDI and CATL.
The German automaker operates three battery factories globally: in Dingolfing, Germany; Spartanburg, USA; and Shenyang, China. BMW is also localising battery production in Germany, Thailand, and is working with the Dräxlmaier Group in Chonburi for battery production.
BMW's focus on sustainability extends to its sourcing of raw materials. The company is sourcing lithium directly from mines, including from Australia, and is working to ensure its cobalt supply is ethically sourced, with cobalt coming from mines in Australia and Morocco.
Europe is expected to see an increase in EV sales, with growth of 35% forecasted in the first nine months of 2020. BMW, with its lead position in the global market for EV production, has access to the best technology for battery cells.
In China, BMW has established a joint automotive production site in Zhangjiagang, China, together with the partner Brilliance Automotive Group. The company aims to have 1 million fully electric and hybrid vehicles on the road by 2021.
Looking ahead, BMW plans to offer five fully electric vehicles by 2025, including the iX3, iNext, i4, and future electric volumes of the Mini brand. By 2023, BMW expects to offer 25 electrified models, more than half of which will be fully electric. The company aims to capture a share of the EV market between 15-20% by 2025.
BMW's strategic partnerships, localised production, and commitment to sustainability position the company well for the future of the electric vehicle market. The company's efforts to reduce its carbon footprint and invest in renewable energy sources are commendable and reflect a growing trend in the automotive industry.
CATL, a key supplier to BMW, is building a plant in Erfurt, Germany for European supply. This plant, once operational, will be the most modern battery cell production facility in the world. BMW played a role in bringing this plant to Europe through "intensive discussions" with CATL and the government in Germany.
In addition to supplying BMW, CATL will also supply batteries to Daimler, VW, Volvo, and tier one supplier Bosch. This collaboration between automakers and suppliers is a testament to the growing importance of electric vehicles and the need for a coordinated effort to meet the demands of a rapidly changing market.
As the world moves towards a more sustainable future, BMW is leading the way in the electric vehicle market. With a strong focus on innovation, sustainability, and partnerships, BMW is poised to make a significant impact in the years to come.
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