Canada Markets close in 1 hr 27 mins
  • S&P/TSX

    20,001.56
    -488.80 (-2.39%)
     
  • S&P 500

    4,316.93
    -116.06 (-2.62%)
     
  • DOW

    33,703.17
    -881.71 (-2.55%)
     
  • CAD/USD

    0.7796
    -0.0037 (-0.4756%)
     
  • CRUDE OIL

    70.16
    -1.81 (-2.51%)
     
  • BTC-CAD

    57,188.25
    -4,747.43 (-7.67%)
     
  • CMC Crypto 200

    1,088.54
    -45.84 (-4.04%)
     
  • GOLD FUTURES

    1,761.60
    +10.20 (+0.58%)
     
  • RUSSELL 2000

    2,169.70
    -67.17 (-3.00%)
     
  • 10-Yr Bond

    1.3070
    -0.0630 (-4.60%)
     
  • NASDAQ

    14,566.76
    -477.21 (-3.17%)
     
  • VOLATILITY

    27.57
    +6.76 (+32.48%)
     
  • FTSE

    6,903.91
    -59.73 (-0.86%)
     
  • NIKKEI 225

    30,500.05
    +176.75 (+0.58%)
     
  • CAD/EUR

    0.6645
    -0.0032 (-0.48%)
     

BMW Orders Up $24 Billion of Batteries as EV Demand Grows

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) -- BMW AG has boosted orders for battery cells to keep pace with accelerating demand for electric cars that made up more than 11% of deliveries during the half of the year.

The German carmaker now has contracts for more than 20 billion euros ($23.8 billion) of batteries, up from 12 billion euros previously, Chief Executive Officer Oliver Zipse said in an interview. The cells are destined for i4 sedans, iX sport utility vehicles and other models BMW is producing through 2024. The company plans to start switching to a new generation of batteries the following year.

“We’re following the market,” Zipse said. “The first half has shown that we’re growing and gaining market share. We’re right in the middle of electrification.”

Carmakers are reeling from a crippling shortage of semiconductors that’s put the industry on high alert to identify other vulnerabilities in their supply chains. Access to enough battery cells and raw materials like cobalt and nickel will be critical to established carmakers’ electric transformations. EV leader Tesla Inc. has gone so far as to clinch metal-supply deals with miners.

BMW’s increased cell orders are spread across China’s Contemporary Amperex Technology Co. Ltd. and EVE Energy Co., South Korea’s Samsung SDI Co. and Sweden’s Northvolt AB.

CATL shares rose as much as 6.5% on Monday, while Shenzhen-traded EVE Energy advanced by a similar amount.

While BMW has readied a response to growing EV sales, it’s continued to be constrained by the dearth of semiconductors. Last month, the company predicted the situation would worsen through the end of the year.

“We said some weeks ago that the second half would be more difficult, and that’s what we’re seeing now,” Zipse said. “It’s more difficult and the problem is here to stay for many months.”

(Updates with Chinese battery maker share moves in 6th paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting