BMW to spend $237 million on battery cell center

1 min readUpdated Jun 1, 2025Nov 30, 20173:00 AM

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BMW will bundle its battery cell expertise in a new competence center, the German luxury carmaker said on Friday, adding it would invest 200 million euros ($237 million) in the site over the next four years.

“By producing battery-cell prototypes, we can analyse and fully understand the cell’s value-creation processes. With this build-to-print expertise, we can enable potential suppliers to produce cells to our specifications,” BMW board member Oliver Zipse said in a statement.

“The knowledge we gain is very important to us, regardless of whether we produce the battery cells ourselves, or not.”

The center will open in early 2019, BMW said.

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What this means

BMW's substantial investment in battery cell competence reflects a critical shift towards vertical integration in the automotive sector, mirroring retail efforts to control customer experience. While companies like Lululemon invest in renovating physical stores to enhance customer engagement, BMW is securing core technology. This proactive move strengthens BMW's position against rivals and mitigates future supply chain risks inherent in emerging EV markets, unlike Toyota's divesting from Tesla. The strategy offers significant competitive advantage by dictating cell specifications and potentially reducing reliance on external suppliers. This will pressure other premium car manufacturers to invest heavily in similar R&D. The key will be watching for the centre's output and how it influences BMW's battery sourcing by early 2019.

Minjun Park · Retail News Asia newsroom

Questions & Answers

What is the total investment BMW is planning for its new battery cell competence center?

BMW plans to invest 200 million euros in the new site. This investment will be spread over the next four years, according to the German luxury carmaker's announcement on Friday.

What is the primary purpose of BMW producing battery cell prototypes at this new centre?

Producing prototypes will allow BMW to analyse and fully understand the cell’s value-creation processes. This 'build-to-print' expertise helps them enable potential suppliers to produce cells to their specifications.

When is the new battery cell competence center expected to open?

BMW stated that the new competence center is scheduled to open in early 2019. The company announced this information on Friday regarding their investment plans.

Will BMW definitely be manufacturing its own battery cells after the centre is established?

The knowledge gained from the centre is important regardless of future production decisions. BMW's board member stated that this insight is valuable whether or not they ultimately produce the battery cells themselves.

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