BMW indicated that it will offer electric versions of all its vehicles in the future. As a result, the company signed a deal with CATL, which is the third-largest EV battery company. The new deal states that BWM will increase its battery orders from $4.43 billion to $8.09 billion USD.
The new deal will ensure BMW’s future supply of EV batteries. As the company transitions into more electric vehicle production, it will require a steady supply of batteries to build its vehicles. The deal also allows CATL to sell to one of the most prominent automotive companies in the world. Additionally, by the year 2021, BMW intends to reduce its dependence on rare earth metals for its EV batteries.
Image Credit: BMW/ CATL
What Makes This Trend Stand Out
- Increased EV Battery Orders
- The agreement between BMW and CATL to increase battery orders presents an opportunity for battery manufacturers to scale up operations and production.
- Reduced Rare Earth Metal Dependency
- BMW's plans to reduce its reliance on rare earth metals presents an opportunity for mining and manufacturing companies to develop innovative alternatives and technologies.
- Growing Demand for Electric Vehicles
- As more companies like BMW commit to producing electric vehicles, there will be a growing demand for battery manufacturing, charging infrastructure, and related industries.
Sectors Adopting This
- Battery Manufacturing
- With BMW's increased battery orders, battery manufacturers will have the opportunity to increase production and expand operations to meet growing demand.
- Mining and Manufacturing
- BMW's plans to reduce rare earth metal dependency will require innovative solutions from mining and manufacturing companies to develop and supply alternative materials.
- Charging Infrastructure
- As the demand for electric vehicles grows, there will be a need for more charging infrastructure in cities and highways, presenting an opportunity for companies to develop and invest in charging solutions.
