BMW AG has increased its battery cell orders to keep pace with the rapidly growing demand for electric vehicles, which constituted over 11% of deliveries during the first half of the year. In an interview, CEO Oliver Zipse stated that BMW now has contracts worth over 20 billion euros (approximately $23.8 billion) for batteries, up from 12 billion euros previously. These batteries will be dedicated to the i4 sedan, iX sports cars, and other models produced by BMW until 2024. The company also plans to start transitioning to a new generation of batteries next year, according to Bloomberg, which was reviewed by Al Arabiya.net.
Zipse remarked, "We are watching the market," adding, "The first half showed that we are growing and gaining market share... We are currently halfway to our electric vehicle goals." Automakers are facing a severe shortage of semiconductors, putting the industry on high alert to identify other vulnerabilities in their supply chains. Access to enough battery cells and raw materials such as cobalt and nickel will be crucial for the electric transitions of automakers. Tesla, a pioneer in the electric vehicle sector, has gone so far as to secure supply deals for minerals with miners.
BMW's increasing battery cell orders are spread across Chinese technology company Amperex Technology Limited, EVE Energy, South Korea’s Samsung SDI, and Sweden's Northvolt AB. Despite BMW's readiness to respond to rising electric vehicle sales, it remains constrained by semiconductor shortages. Last month, the company predicted that the situation would worsen through the end of the year. Zipse stated, "We said a few weeks ago that the second half would be more difficult, and that is what we are seeing now... It is more challenging, and the problem is here to stay for several months."
