BMW signs $1 billion battery supply contract to support future EV production

[Stormysaga + 62]

BMW is currently getting its electric vehicle batteries from Samsung SDI. Now it has signed a contract with CATL, China’s biggest battery manufacturer, to secure future electric vehicle production, worth about  $1.16 billion. Interesting part of this deal is that it isn't for batteries CATL is producing in China, but it will instead finance a new European factory for the company. 
 

[LAOIL + 33]

BMW CEO Krüger said  he needs a reliable battery technology from an established player now. In the future new technologies might be of European origin. 

[Vlad Kovalenko + 115]

 European producer are still not competitive. That's why they need a supplier who is already there. And CATL was obviously there. And more than willing to build a factory in Germany. 

[Adam Varga + 123]

While Asian producers command about 90% market share of the lithium-ion batteries and Tesla owns a gigafactory, German carmakers refused to invest in this market. Bosch was the only one going into this market but after all  still decided to withdrew because of big investments.