BMW has no plans to manufacture its own batteries for electric vehicles

The BMW Tower was photographed in Munich on March 6, 2021.

Anne Czichos | iStock Editorial | Getty Images

The BMW Group has no plans to manufacture its own batteries for electric cars. The CEO of the German automotive giant tells CNBC that his company has a robust supplier network to meet its needs.

“We have strong contracts with various battery manufacturers from China, Korea and Europe, and that is a very strong network,” said Oliver Zipse.

“They will provide us with enough batteries for our ramp-up in the next few years,” he added. “And for us there is no need to go into our own production.”

Zipse’s comments came shortly after German rival Volkswagen Group announced that it would build several “gigafactories” in Europe by the end of the decade.

“Together with partners, we want to put a total of six cell factories into operation in Europe by 2030,” said Thomas Schmall, CEO of Volkswagen Group Components, in a statement published on Monday. This step would guarantee “security of supply”.

On issues related to semiconductor supply that have affected a number of companies, BMW’s Zipse said the company has not seen any production stoppages related to chip shortages.

“Our forecast is of course cautious, we are not ruling out (that) … there could be short and short term volume disruptions, but we have to see,” he said.

“We have very strict management of our suppliers and we … ordered our chipset early last year,” he added. “And our general position is that we expect our orders … to be delivered.”

Zipse spoke on the same day that BMW announced it would have around 12 all-electric models on the road by 2023. In addition, fully electric vehicles should account for at least 50% of global deliveries by 2030.

For 2021, BMW said the automotive segment is “expected to see a solid year-over-year increase in deliveries to customers worldwide.” Earnings before interest and taxes are expected to be between 6% and 8%.

BMW shares rose around 4.81% on Wednesday.

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