BMW is expanding its supply chain in North America for electric vehicle (EV) production. The automaker has partnered with battery material manufacturer Umicore to build a cathode active material plant in Ontario, Canada. This plant will supply BMW's battery cell manufacturer AESC, which is building a battery factory in South Carolina. Canada is becoming an attractive location for automakers and suppliers due to tax incentives and growth opportunities. Other automakers, such as Ford and Volkswagen, have also announced plans to establish EV-related facilities in Canada.
Frequently Asked Questions:
1. What is BMW's regional supply chain strategy?
Answer: BMW is bolstering its regional supply chain strategy by entering into a long-term supply agreement with Umicore and AESC for EV battery materials in North America. This strategy aims to secure supplies of critical materials for EV batteries regionally, increase regional independence, and reduce reliance on global supply chains. Source
2. Where is the new supplier for BMW's regional supply chain strategy located?
Answer: The new supplier for BMW's regional supply chain strategy is located in Canada. This partnership with Umicore will supply BMW's battery cell supplier AESC with cathode active battery materials (CAM) from a new plant in Ontario, Canada. Source
3. Are there any expansions in production for BMW's regional supply chain strategy?
Answer: Yes, there are expansions in production for BMW's regional supply chain strategy. BMW is expanding production in South Carolina, USA, to further strengthen its regional supply chain for EV materials. Source
4. What is the goal of BMW's regional supply chain strategy?
Answer: The goal of BMW's regional supply chain strategy is to achieve a globally balanced procurement strategy and reduce the reliance on global supply chains. By securing supplies of critical materials for EV batteries regionally and increasing regional independence, BMW aims to strengthen its sustainability and resilience in the supply chain. Source
5. Does BMW prioritize renewable sources for its EV battery materials?
Answer: Yes, BMW prioritizes renewable sources for its EV battery materials. The power used in the production of battery cells and cathode materials will come exclusively from renewable sources. This aligns with BMW's commitment to sustainable practices in its procurement strategy. Source