The BMW Group will soon be expanding its own battery production, and the automaker is going to spend €250 million on the venture.
BMW has selected two sites for the project. One is in Leipzig, where series production of battery modules will take place. The plant will handle the production of different module variants with only one line. The process is being built in the facilities used for making i8 hybrid sports car. BMW will commission a second production line in 2022. Alongside the battery components, the site will make electric drivetrain components.
The other site is in Regensburg, where painting battery cells meant for high-voltage power packs will occur. Painting battery cells helps with the mechanical robustness and thermal conductivity. Production has already started here in April 2021, but three other lines will start producing before the end of next year. There will be more than 300 employees on the payroll by 2022.
There is another plant in Dingolfing that is also going to be used in the battery production. It will host the assembly of battery components, while also serving as production facilities for electric vehicles.
BMW plans to use the high voltage batteries from this plants in the production of the BMW iX and BMW i4, two models that will be hitting the market soon.
In total, BMW is sinking 790 million euros into getting the two plants in Leipzig, Regensburg and two other plants in Dingolfing and Steyr ready for making more battery components. Their output will help fire BMW’s electric ambitions. There are other battery plants in Spartanburg in the US and Shenyang in China.
Explaining the reasoning behind the investments, Michael Nikolaides, Head of Planning and Production Engines and E-Drives says; “We assume that by 2030 at least 50 per cent of the vehicles we deliver to our customers worldwide will be fully electric. Accordingly, we are consistently expanding our production network for electric drives. We are increasing capacities at existing locations and opening up others.”
BMW has extracted commitment to green energy from its suppliers.