Reporter Original: Park Heon-seok / Translation: Korea Credit News English Edition
  • Published 2026.11.09 23:34

Samsung SDI to supply cells in Europe, LG Energy Solution in the US
Strategy strengthens local production and local supply to shorten transport distances

Samsung SDI logo.
Samsung SDI logo.

German automaker BMW has officially added Samsung SDI and LG Energy Solution to its next-generation electric vehicle battery supply chain. The move aims to increase local sourcing of key components, reduce transport distances, and enhance the flexibility and resilience of its global supply chain.

On Nov. 9, BMW Group announced the selection of Samsung SDI for Europe and LG Energy Solution for the United States as new cell suppliers for its sixth-generation (Gen6) high-voltage batteries. The two companies will supply battery cells produced at their existing plants in Europe and the US, respectively, starting in the late 2020s.

The decision follows BMW's 'Local for Local' principle of sourcing components close to vehicle production plants. The strategy aims to create added value in key strategic markets such as Europe and North America while shortening component transport distances to improve logistics efficiency.

In Europe, Samsung SDI joins existing suppliers CATL and EVE Energy of China as the third company to supply locally produced cells. In the US market, LG Energy Solution has newly entered the supply chain to provide battery cells.

Through this, BMW has reduced its dependence on specific countries or companies and built a diversified global supply chain. Amid growing uncertainty in the global EV market, the structure secures battery supply stability by cooperating with proven companies in each region.

BMW is accelerating its localization system by placing five Gen6 battery assembly facilities near vehicle plants. Assembly sites have been established in Irlbach and Strasskirchen, Germany; Debrecen, Hungary; Shenyang, China; Woodruff, US; and San Luis Potosi, Mexico.

The distance from battery cell suppliers to assembly facilities and vehicle plants is minimized to maximize production efficiency. Given the characteristics of high-voltage batteries, which determine EV driving range and charging performance, a stable local production system helps reduce supply chain delay risks.

BMW sources battery cells from external specialists while also conducting its own research on next-generation cell technology and production processes. Centered on the Battery Cell Competence Center (BCCC) in Munich, Germany, the company is producing near-series cells and reviewing raw material efficiency measures.

Hendrik Lang, BMW's head of high-voltage battery purchasing and quality, said, "The global partner network we have built with leading cell manufacturers ensures resilient, flexible, and competitive battery cell supply."

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