Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Denso hires Joseph Wright as operations director
      Johnson named president, managing partner of Arnold Motor Supply
      Conti starts production of ‘HL' load index tires for select OE customers
      GM banking on 'BrightDrop' EV to build commercial van business
    • Q3 results disappoint for Monro, but business is trending up
      Hankook, Revvo team up to trial 'smart' tire technology in California
      ITC votes to keep duties in place on China P/LT tire imports
      NLRB certifies USW as bargaining unit for Kumho plant in Georgia
    • Goodyear, ConMet to develop tire/wheel-end digital analytics system
      Hankook, Revvo team up to trial 'smart' tire technology in California
      Love's plans to add over 30 stores in 2021 with Truck Care/Speedco services
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
    • ITC votes to keep duties in place on China P/LT tire imports
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New stimulus package fixes PPP loan confusion
      USW opposes Taiwan tire makers' dumping counterproposal
    • Nokian's latest studded winter tire line to be available this summer
      Goodyear to install dynamic driving simulator at Luxembourg site
      ITC votes to keep duties in place on China P/LT tire imports
      Air France renews tire supply deal with Michelin
    • New NASCAR, F1 tire designs delayed due to COVID
      U.K. race series extends contract with Goodyear through 2026
      Goodyear Racing staying on track
      General Tire Canada renews sponsorship deal with Raceline Network
    • Nokian's latest studded winter tire line to be available this summer
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Hankook doubles size range of Ventus V2 all-season UHP line
    • Q3 results disappoint for Monro, but business is trending up
      TIA to offer retail store leadership training course 5 times in 2021
      Updated ALI lifting points guide covers vehicle model years 2000-2021
      VIP Tires opens 20th store in New Hampshire, in Keene
    • Updated ALI lifting points guide covers vehicle model years 2000-2021
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Johnson named president, managing partner of Arnold Motor Supply
      AMRA to host 5 educational webinars in Feb., March
    • WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
    • New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
    • Hankook, Revvo team up to trial 'smart' tire technology in California
      ITC votes to keep duties in place on China P/LT tire imports
      Nokian Tyres to add up to 150 jobs at U.S. factory
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TMPS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
July 15, 2014 02:00 AM

BMW open to sharing battery technology with rivals

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (BMW A.G. photo)
    BMW will buy more battery packs from Samsung SDI for cars such as the i8 sports coupe. The all-wheel-drive i8 has a rear-mounted 228-hp 1.5-liter gasoline engine and front-mounted electric motor. Total power is 357hp.

    By Luca Ciferri, Crain News Service

    ULSAN, South Korea (July 15, 2014) — To gain economies of scale, BMW A.G. is open to sharing with rival auto makers the electric-vehicle battery cell technology it co-developed with Samsung SDI.

    BMW purchasing boss Klaus Draeger said sharing the technology would reduce the cost of the battery cells—the most expensive part of an electric vehicle.

    “If Mercedes called us, we would be happy to find a way with Samsung SDI to supply them with battery cells,” he said.

    BMW said it plans to increase orders of battery cells from its exclusive supplier Samsung SDI by “at least” 20 to 30 percent in 2016 from its 2014 level.

    The supply deal was part of a memorandum of understanding signed between the two companies in Ulsan on July 14 that also included co-development of a next generation of battery cells.

    Samsung SDI will increase its supply for the BMW i3 battery powered city car and i8 plug-in hybrid sports coupe and will also supply batteries for future BMW hybrid models starting with the X5 plug-in hybrid, Mr. Draeger said.

    BMW sold 5,396 i3 cars in the first half globally out of a total of 1.02 million vehicles it sold during the period. The auto maker said it raised i3 production to 100 units a day starting in April and will raise output by further 40 percent at the end of summer. The i8 launched in Europe last month and will go on sale in the U.S. next month.

    BMW began working with Samsung SDI, a subsidiary of South Korea's largest conglomerate, Samsung, on lithium ion battery cells in 2009.

    Samsung SDI supplies battery cells to Chrysler Group L.L.C. in the U.S. for the 500e battery powered minicar and to Ferrari for the limited edition LaFerrari hybrid model.

    For Samsung SDI, which supplies batteries to Apple, the order builds on the company's plans to expand its automotive business. Its competitors include South Korea's LG Chem, which supplies Renault, and Panasonic, which supplies batteries to Tesla.

    Lee Sang Hyun, an analyst at NH Investment & Securities, said the BMW deal will help SDI have greater presence as an electric car battery maker in the U.S. and Europe, where it is relatively less well known compared with other battery suppliers.

    Last month, Tesla said it would make hundreds of its EV patents openly available to competitors. CEO Elon Musk wrote, “If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal.”

    Mr. Musk also cited environmental concerns: “Given that annual new vehicle production is approaching 100 million per year and the global fleet is approximately 2 billion cars, it is impossible for Tesla to build electric cars fast enough to address the carbon crisis.”

    According to Japanese research firm B3, the global market for automotive lithium-ion batteries will increase to $21.3 billion in 2020 from $4.4 billion in 2014.

    Samsung SDI builds 600,000 battery cells a month on two production lines in Ulsan. The company will add a third production line by the end of the year to take monthly output to 900,000 battery cells.

    A battery normally takes up 30 to 40 percent of an electric vehicle's manufacturing cost, Samsung SDI spokesman David Kim said.

    Fuel-cell option

    At an event in Ulsan to announce the deal, BMW's Mr. Draeger acknowledged that one of the challenges for battery electric cars is the limited driving range called range anxiety.

    “This is why the whole industry is still looking very much at fuel cells because it is not clear what is also happening on the side of the electric infrastructure,” he said, adding that BMW is also doing a research on a fuel cell vehicle system.

    BMW plans to further boost purchasing from South Korean suppliers from over 300 million euros ($408.45 million) in value this year.

    BMW uses battery cells produced by A123 in the U.S. for hybrid versions of its 3-series and 5-series sedans and for the outgoing X5 SUV hybrid.

    Reuters and Bloomberg contributed to this report, which appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.

     

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION