Samsung, BMW discuss strengthening EV battery partnership

Zipse and Lee [Photo provided by Samsung Electronics]

Samsung Electronics Co.’s Executive Chairman Jay Y. Lee and BMW Chief Executive Officer Oliver Zipse met again last weekend to discuss ways to boost their partnership in electric vehicle battery following Samsung SDI Co.’s 2.9-billion-euro ($3.1 billion) deal with the German carmaker in 2019.

Lee met with Zipse and other top officials at BMW at the brand’s driving center in Yeongjongdo, Incheon on Saturday and had a chance to see the BMW i7, an EV edition of the flagship 7 Series sedan. The BMW i7 is equipped with Samsung SDI’s high-performance P5 batteries. Lee’s meeting with Zipse came about six months after they met at BMW’s headquarters in Germany. The latest meeting also featured Samsung SDI CEO Choi Yoon-ho and BMW Senior Vice President Jean-Philippe Parain.

Samsung said the two heads discussed ways to strengthen their battery business partnership but fell short of details. Industry watchers said Samsung SDI could supply its newest 46mm cylindrical batteries to BMW given their significantly expanded cooperation based on the long-term supply contract.

At the driving center, BMW held a ceremony to deliver all-electric i7 sedans equipped with Samsung SDI’s Gen 5 prismatic batteries for Samsung Group executives.

The P5 battery increased energy density by 20 percent while material costs dropped by more than 20 percent to maximize the driving range. BMW has expanded the application of P5 battery cells to its latest EV models such as iX and i4.

During the meeting, Lee expressed his hope to continue to strengthen cooperation and Zipse said Samsung is one of its important partners in its electrification push and it is meaningful for Samsung executives to be with BMW, according to Samsung.

Samsung and BMW have been collaborating for 13 years since a joint EV development project in 2009. Starting with the i3, BMW’s first EV released in 2013, many BMW green cars are equipped with Samsung SDI’s high-performance batteries. Samsung SDI signed a 10-year contract with Germany’s BMW Group to supply 2.9-billion-euro worth lithium-ion battery cells for the car maker and their cooperation is on path for expansion alongside increased demand in the EV market.

Samsung SDI recently started full-scale operation of its second plant in Hungary to produce batteries for the German carmaker. There is also a possibility that BMW will become one of the global automobile brands for a joint venture being sought by Samsung SDI. Samsung SDI established a $2.5 billion joint venture with Stellantis in October of last year.