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BMW agrees to $4.7 billion contract with China's CATL for battery cells

  

Category:  Health, Science & Technology

Via:  bob-nelson  •  6 years ago  •  15 comments

BMW agrees to $4.7 billion contract with China's CATL for battery cells

S E E D E D   C O N T E N T


BMW plans to source 4 billion euros' ($4.7 billion) worth of battery cells from Chinese battery maker Contemporary Amperex Technology Ltd ( CATL ) over the next few years, the carmaker's purchasing boss said on Monday.

2017_bmw_i3_angularrear1.jpg The long-term contract sees 1.5 billion euros' worth of battery cells coming from a new CATL plant in Erfurt, in the eastern German state of Thuringia, Markus Duesmann said in Munich. The rest will come from China.

A contract for the construction of the new plant is due to be signed on Monday during a visit to Germany by China's Premier Li Keqiang.

There have been warnings that Europe's lack of its own production capabilities for the cells that power electric cars could leave its car industry exposed and too reliant on others.

Tesla founder Elon Musk has spoken about locating a battery ' Gigafactory ' near the Franco-German border, in the vicinity of its Grohmann Engineering division.

Duesmann said BMW had invested in some of the costs for the CATL factory in Erfurt, but declined to say how much.

He said BMW was investing in cell research but a decision on whether to produce battery cells itself had not been made.

USC90BMC681A0210011.jpg "I don't rule it out," he said.

BMW is "very comfortable" with two suppliers of battery cells at the moment, but could add a third and is in talks with eight manufacturers, he added.

He said he would welcome it if other carmakers also wanted to invest in the Erfurt plant.

However, BMW has no plans to jointly purchase cells with rival Daimler, he said, because of the competitive advantage that can be gained if batteries give greater range or can be charged faster.

Daimler said its strategy was to buy components where they are produced. "We welcome the decision of CATL to manufacture in Germany and are in talks regarding this," a spokesman said.

BMW is sourcing raw materials for the cells itself to pass to the battery makers, in particular cobalt, and is currently negotiating long-term contracts.

Duesmann said BMW would only conclude contracts where inhuman conditions and child labor were ruled out. It said it was not sourcing cobalt from mines in Congo.


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Bob Nelson
Professor Guide
1  seeder  Bob Nelson    6 years ago

China and Germany playing the long game........

 
 
 
Bob Nelson
Professor Guide
2  seeder  Bob Nelson    6 years ago

... and then this on Reuters :

Factbox: German companies sign contracts with Chinese partners

German companies signed a raft of agreements with Chinese partners at a meeting of Chinese Prime Minister Li Keqiang and German Chancellor Angela Merkel in Berlin on Monday, according to a document seen by Reuters.

FILE PHOTO: The BMW logo is seen on a vehicle at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 29, 2018. REUTERS/Shannon Stapleton

Following are details of contracts signed:

BASF ( BASFn.DE )

BASF signed a Memorandum of Understanding (MoU) with China’s Guangdong Province to look at building a highly-integrated “Verbund” chemical production site there, BASF said.

The site would be BASF’s largest investment and would be operated under its sole responsibility, it said. The investment is estimated to reach up to $10 billion by completion of the project around 2030, it added.

BMW ( BMWG.DE )

BMW and its joint venture partner Brilliance Automotive Group Holdings ( 1114.HK ) have agreed to expand production capacity at BMW Brilliance Automotive’s (BBA) two sites in China to a total 520,000 BMW brand vehicles in 2019, BMW said.

In addition, it said the two companies had agreed that the all-electric BMW iX3, to be produced by BBA from 2020, would be exported from China to other markets.

DAIMLER ( DAIGn.DE )

Daimler and Tsinghua University have signed an agreement to extend their cooperation on sustainable transportation research in China by three years, Daimler said.

With an annual multi-million renminbi investment, the Tsinghua Daimler Joint Research Center for Sustainable Transportation will sharpen its research efforts in the fields of automated driving and intelligent mobility, it said.

SIEMENS ( SIEGn.DE )

Siemens and Alibaba Cloud, the cloud computing arm of Alibaba Group ( BABA.N ), signed an MoU to partner to foster the industrial Internet of Things (IoT) in China, Siemens said.

Under the MoU, both companies will begin collaborating immediately and intend to make the MindSphere platform on Alibaba Cloud available in 2019, it said.

Separately, Siemens said it had signed an MoU with State Power Investment Corporation (SPIC) of China to further confirm their intention to collaborate in the field of heavy-duty gas turbines.

It said the signing on Monday would expedite finalization of the technology cooperation in the near future.

 
 
 
Kavika
Professor Principal
3  Kavika     6 years ago

Yup, the ''long game'' and you'll see China reach more and more into eastern European countries as witnessed in the summit last week of eastern European countries with China as a invited party. 

The site would be BASF’s largest investment and would be operated under its sole responsibility, it said.

I wonder if this means without going into a joint venture with a Chinese company?

 
 
 
Kavika
Professor Principal
3.1  Kavika   replied to  Kavika @3    6 years ago

Currently the EU is a larger trading partner than the US is with China. 

With the current situation (trade war) it could become much larger. 

 
 
 
dave-2693993
Junior Quiet
3.1.1  dave-2693993  replied to  Kavika @3.1    6 years ago
With the current situation (trade war) it could become much larger.

Especially with those rail roads you mentioned in another article.

 
 
 
Bob Nelson
Professor Guide
3.1.2  seeder  Bob Nelson  replied to  dave-2693993 @3.1.1    6 years ago
Especially with those rail roads...

Yup.

We're kinda sorta seeing a pattern, hmmm?

 
 
 
dave-2693993
Junior Quiet
3.1.3  dave-2693993  replied to  Bob Nelson @3.1.2    6 years ago

Yes.

Europe soon to be part of Pan China.

 
 
 
Kavika
Professor Principal
3.1.4  Kavika   replied to  Bob Nelson @3.1.2    6 years ago

The investment by the Chinese and in some cases by the Japanese in the rail through Kazakhstan is expanding at a very rapid pace. COCSO (China Ocean Shipping Co) has purchased an interest in the new ''dry port'' in Kazakhstan. 

Additionally COSCO just purchased OOCL making COSCO the third largest shipping line in the world. 

 
 
 
Bob Nelson
Professor Guide
3.1.5  seeder  Bob Nelson  replied to  dave-2693993 @3.1.3    6 years ago

.... along with the rest of the world...

What I'm having trouble deciding is... whether or not that's a good thing. Thinking 2

 
 
 
Bob Nelson
Professor Guide
3.1.6  seeder  Bob Nelson  replied to  Kavika @3.1.4    6 years ago

... but on the other hand, there's all that other news about America's international successes...

 
 
 
Bob Nelson
Professor Guide
3.2  seeder  Bob Nelson  replied to  Kavika @3    6 years ago

But we needn't worry... Our President is playing three-dimensional chess!   Giggle

 
 
 
Kavika
Professor Principal
3.2.1  Kavika   replied to  Bob Nelson @3.2    6 years ago

Probably unnoticed has been the investment by China in Europe. Since 2014 they have increased their purchases of property and have been buying more and more of the sovereignty bonds (similar to US Treasury notes)...

Last year China surpassed the US as Germany's largest trading partner...

 

 
 
 
Bob Nelson
Professor Guide
3.2.2  seeder  Bob Nelson  replied to  Kavika @3.2.1    6 years ago

The country with the largest added value in an iPhone is... Germany...

 
 
 
Kavika
Professor Principal
3.2.3  Kavika   replied to  Bob Nelson @3.2.2    6 years ago
The country with the largest added value in an iPhone is... Germany...

Interesting.

 
 

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