BMW Secures EV Battery Supply Agreements With Samsung SDI and LG Energy Solution

BMW Group has finalized long-term supply agreements with South Korean battery manufacturers Samsung SDI and LG Energy Solution to provide sixth-generation cylindrical cells for its upcoming electric vehicles. The contracts, announced on November 9, 2026, secure regional battery production for the German automaker’s next-generation Neue Klasse platform.[1][3]

Under the dual-sourcing structure, Samsung SDI will supply battery cells manufactured at its European production base in Göd, Hungary. Meanwhile, LG Energy Solution will fulfill the North American volumes, producing cells at its facilities in Holland and Lansing, Michigan, as well as a new plant in Queen Creek, Arizona.[1][4]

Deliveries are scheduled to begin between 2028 and 2029. Specific contract values and total gigawatt-hour volumes remain confidential under the agreement, though industry analysts estimate the LG Energy Solution contract alone could involve an annual supply volume of approximately 10 gigawatt-hours over a 10-year period.[1][4]

The deals complete a critical phase of BMW’s procurement overhaul ahead of a massive electric vehicle rollout. By securing regional capacity from two of the world's largest battery makers, the automaker is insulating its supply chain against geopolitical shocks and trade tariffs.[2][5]

The Local for Local Strategy

The new contracts are the capstone of BMW’s “local for local” manufacturing philosophy, which mandates sourcing heavy and critical components as close to vehicle assembly lines as possible. The strategy is designed to leverage global procurement markets while operating locally to ensure product competitiveness.[1][2]

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“We aim to ensure our products' global competitiveness and to be successful in different markets,” said Nicolai Martin, a member of the BMW Group Board of Management responsible for purchasing and the supplier network. “Through our battery cell partnerships, we are actively strengthening value creation in Europe and the U.S.”[1]

With the addition of Samsung SDI, BMW’s European battery supply chain has expanded to a three-pillar system. The South Korean firm joins Chinese manufacturers CATL and EVE Energy, which already hold contracts to supply the automaker’s European assembly plants. This diversified approach prevents BMW from becoming overly reliant on a single vendor.[2][4]

In the United States, securing LG Energy Solution establishes a dedicated regional supplier for BMW’s North American operations. The move is particularly significant as automakers race to reduce their dependence on Chinese battery imports in the U.S. market, where China currently accounts for roughly four-fifths of all battery cells made worldwide.[2][3]

The localization strategy directly addresses the stringent sourcing requirements of the U.S. Inflation Reduction Act. By manufacturing the cells domestically, LG Energy Solution ensures that the resulting BMW vehicles remain eligible for lucrative federal tax incentives, a baseline requirement for any automaker attempting to sell electric vehicles competitively in America.[2]

Sixth-Generation Cylindrical Cells

The batteries covered by the new agreements represent a fundamental shift in BMW’s electric vehicle architecture. The automaker is abandoning the prismatic cells used in its fifth-generation batteries in favor of 46-millimeter-diameter cylindrical cells. This format change prioritizes packaging efficiency, structural rigidity, and advanced thermal management.[3][4]

The sixth-generation cylindrical cells deliver substantial performance upgrades over their predecessors. According to BMW’s technical specifications, the new format boosts volumetric energy density by more than 20 percent. For drivers, this translates to a driving range improvement of up to 30 percent and a corresponding 30 percent reduction in direct-current fast charging times.[4]

Beyond the cell chemistry, the Gen6 architecture utilizes advanced cell-to-pack technology. By eliminating the intermediate modular housings that traditionally group battery cells together, engineers can pack more active material into the same physical footprint, reducing the overall weight of the battery pack while lowering manufacturing complexity.[4]

To meet these new technical requirements, both South Korean suppliers are aggressively retooling their manufacturing footprints. Samsung SDI is currently converting existing prismatic battery production lines in Hungary to manufacture the 46-millimeter cylindrical format, with mass production targeted for 2027.[4]

LG Energy Solution is similarly preparing its Arizona facility to produce 46-series cylindrical batteries specifically tailored for the automaker. The company passed BMW’s rigorous supplier selection process in April 2026, paving the way for the final supply agreement signed this week.[4]

Deepening South Korean Partnerships

For LG Energy Solution, the November 9 agreement marks a significant commercial milestone. While the company had previously supplied batteries for BMW’s plug-in hybrid and mild-hybrid vehicles, this contract represents its first time providing cells for the automaker's pure electric vehicle lineup.[3][4]

The deal lays the groundwork for LG Energy Solution to expand its North American customer base beyond its existing joint ventures with General Motors, Hyundai, and Honda. By securing a premium European automaker for its U.S. output, LG reinforces its position as a primary alternative to Chinese battery dominance.[2][4]

Conversely, the agreement with Samsung SDI extends a long-standing corporate relationship. The two companies previously signed a €2.9 billion ($3.3 billion) battery cell supply contract in 2019 for BMW’s fifth-generation technology, covering deliveries from 2021 through 2031.[4]

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The collaboration between BMW and Samsung SDI also extends into future battery chemistries. In October 2025, Samsung SDI entered a three-party agreement with BMW and U.S.-based Solid Power to collaborate on next-generation solid-state battery development, ensuring both companies remain positioned for the next major breakthrough in energy storage.[4]

Global Assembly Infrastructure

Securing the raw battery cells is only half of BMW’s localization equation. To process the output from Samsung SDI, LG Energy Solution, CATL, and EVE Energy, the automaker is constructing five new high-voltage battery assembly plants worldwide.[1][5]

These facilities will take the individual cylindrical cells and package them into the final battery packs that are bolted into the vehicle chassis. The new assembly sites are strategically positioned adjacent to BMW’s vehicle manufacturing hubs to minimize logistics overhead.[1][2]

The European network includes facilities in Irlbach-Straßkirchen in Lower Bavaria, Germany, and Debrecen, Hungary. In Asia, a dedicated plant is being built in Shenyang, China. For the Americas, BMW is establishing assembly centers in Woodruff, South Carolina, and San Luis Potosí, Mexico.[1][2][5]

“Our global partner network with leading cell manufacturers ensures that we have a resilient, flexible and competitive battery cell supply,” said Hendrik Lang, head of purchasing and quality of high-voltage batteries at BMW. The hub-and-spoke model drastically reduces the distance that heavy, hazardous battery materials must travel.[2]

By shortening the transport routes between the cell suppliers, the pack assembly facilities, and the final vehicle assembly plants, BMW aims to cut logistics costs and lower the carbon footprint of its manufacturing process. The automaker recently completed a $1.7 billion investment in its South Carolina operations to support this transition.[1][2]

The transition to the Neue Klasse platform and the Gen6 battery architecture represents a multi-billion-euro commitment for the Munich-based automaker. As the late-2020s delivery window approaches, the successful execution of these supply agreements will dictate whether BMW can achieve cost parity with internal combustion engines while defending its market share.[1][4]