BMW iNext with CATL battery – VIP News

Thuringia builds one of the largest battery manufacturers in China a factory and supplies, among others, BMW for the Stromer "iNext". With the help of China, it is the first time that a serious counterpart of Tesla has emerged.

Now the cat is out of the bag: East Germany is becoming the center of electromobility in Germany. In Thuringia, a battery factory of the Chinese giant CATL battery is under construction. Thuringia and the management of CATL (Contemporary Amperex Technology Co Ltd) will sign what is called a project agreement Monday afternoon in Berlin. As reported by the MDR, this occurs as part of a meeting of the German-Chinese government. "At the meeting, Chancellor Angela Merkel receives Chinese Premier Li Keqiang, who arrives with several ministers," the station said.

1000 new jobs will start

CATL should operate in the "Erfurter Kreuz" between Erfurt and Arnstadt can be reached by two motorways, have an area of ​​?? about 80 hectares in sight. In addition to the central location in Germany – also to potential customers – the infrastructure should have spoken for the location, including an efficient electrical connection. According to information provided by the DPA news agency, the Chinese have audited other places in Europe, which would hardly replace the ten or even hundreds of thousands of future jobs in the country. Automotive industry and suppliers. But the CATL agreement is a first step for BMW, Daimler and Co., at least with the help of Chinese partners to play a role in the automotive industry of the future.

BMW buys batteries for 1.5 billion Erfurt

BMW boss Harald Krüger confirmed that CATL would build the batteries for the new BMW iNext electric car. BMW buys batteries worth four billion euros. The cells worth 1.5 billion euros are expected to come from the planned factory of CATL in Erfurt in 2021, said Monday BMW Purchasing Director Markus Duesmann in Munich. The cells would then be driven from Erfurt to the BMW Dingolfing factory, 400 kilometers away, where they would be badembled into modules for the all-electric iNext. BMW is buying cells for an additional 2.5 billion euros at CATL in China – for the Electro – Mini, among others, which will be produced at Oxford next year.

No cobalt from Congo

Important for battery cells and expensive cobalt BMW will buy even in the mines and deliver from 2020 for cells to CATL and Samsung – Samsung delivers up to now the batteries for the i3. BMW can therefore comply with environmental and social standards. In Congo, where 60% of the cobalt extract comes from, do not buy BMW, said Duesmann and refers to child labor, which is linked to local production.

The BMW iNext, which could also be called i4 or i5 in the production version after the i3 city car as the first serious opponent for Tesla's premium Stromer. Visually, the iNext is a 4.70-meter-long coupe sedan, a kind of Gran coupe, which must be offered with a power range of 300-500 hp. Battery technology should guarantee distances of 400 to 600 kilometers. The car should also have automated driving functions of level three or four (the car can cover long distances without the intervention of the driver) – just as BMW is currently testing in China. While the batteries are being built in Erfurt, the car itself is under construction in Munich. In addition, according to various media, the Daimler Group for its new interest Stromer in CATL batteries is connected.

Electricity generation: more expensive, but less carbon than in China

Battery production includes the manufacture of batteries internally The earth has not only logistical advantages, but it also makes sense in a holistic view of the production chain. In China, there is a 74 percent coal energy output, with a low CO2 balance in production. In Germany, it is still possible to improve the expansion of renewable energy, but Germany should be able to do without coal faster than China. The flip side: the energy transition leads to the comparison of the EU with the highest electricity costs, which is actually a bad condition for energy intensive industries such as the automobile. It will be interesting to see what kind of promises investors make here in Asia.

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CATL plans behind the Chinese government

But what dimensions can we expect from the new battery factory? ? "It is reasonable to badume that the capacity will not be huge, more likely to be a small but delicate battery cell, which should be able to be pulled fast enough to power some of BMW's key electric models," the portal said. the Stock Exchange. Motley Fool "." It will be exciting to see how BMW reconciles its battery expertise with CATL manufacturing, and having production nearby, and probably having a say in the exact specifications, has the potential to produce very high quality of the final product. Database, Tests, Probefahren: All electric cars in Germany

Faster conversion to new battery format?

One could speculate that BMW is now faster than previously expected to switch to a new battery format. Tesla, for example, builds batteries with a relatively small amount of cobalt, thus saving on this expensive and problematic resource. By allowing CATL to act as a wholly Chinese company, market watchers see full support from the state for expansion. In China, companies can only develop internationally if they have the "coup" of the government for that. Behind CATL, there are also strategic plans of the Chinese government. The CATL agreement can therefore be interpreted as China's new access to German industry; the takeover of the Kuka robot manufacturer is still in the memory

China opens its markets

At the same time, the rules of joint venture are relaxed in China, which should attract new investments. The opening of the market will change the rules of the game. "We consider this development as positive, both for international car manufacturers and for Chinese industry." Jan Burgard, Managing Partner at Berylls Strategy Advisors, at VIP News. However, we must also understand the Chinese leadership strategy. "We expect this to drive market consolidation in China, which also suggests that the deregulation of existing regulations on joint ventures has been accompanied by other measures that will influence the development of auto production," said Mr. Burgard. . the candidates who could benefit from it are Tesla. The Americans want to build a battery factory in Shanghai and benefit from the mbadive electric wave in China. Because the export of Teslas to China is in view of the trade war incited by the United States for punitive tariffs under any good star. Germany, on the other hand, is facing the decision to bind more economically in the future: in China, where we also consider its own advantage but, overall, it find reliable partners. Or the United States, which indeed buys a lot of German cars – but fully funded on the pump and at the same time with an aggressive foreclosure policy are permanently torpedoing the rules of the global economy.

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bad cards

The battle for battery cells is in any case booming and the German automaker have so far bad cards. Only those who have high performance battery cells in sufficient quantities and at a reasonable cost have the opportunity to offer their electric cars at a competitive price. Exactly, there is the German automaker in a dangerous Dummy, resulting in a fatal dependence on the coveted battery cell manufacturers.

Currently, the market is dominated by a handful of essential electroluminescent cell manufacturers, all of which are located in Asia. The big players in this challenging game are: LG Chem, Panasonic, Samsung, SK and CATL from China. Tesla, for example, has entered into long-term supply contracts with Panasonic and, despite its current production problems, has a significant advantage over other manufacturers. German manufacturers, on the other hand, have underestimated the dynamics of the market on the subject (read more here). In the future, however, they invest heavily in expanding their emotions. Volkswagen, for example, estimates that by 2025 about a quarter of its cars will be powered by an electric motor.

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