Leaders of Samsung, BMW discuss bolstering EV battery partnership

Samsung Electronics Chairman Jay Y. Lee met with the Chairman of the Management Board of BMW Group Oliver Zipse on Saturday to discuss ways to deepen cooperation in the mobility sector. 

Samsung Electronics Co. released details of the high-level meeting on Sunday, which took place at the BMW Advanced Driving Center Seoul, located on the outskirts of the capital. 

Samsung SDI Co. CEO Choi Yoon-ho, BMW Senior Vice President Jean-Philippe Parain, and BMW Group Korea CEO Han Sang-yun also attended. 

According to Samsung, Lee and the BMW management team discussed ways to bolster collaboration in the manufacture and supply of battery cells needed in electric cars. 

The German automaker will equip its latest EV with the P5 battery manufactured by Samsung SDI. 

Samsung and BMW began their joint development project on EVs in 2009, a process on which Lee has been communicating with the German partners from the start.

Lee and Zipse posed for photos in front of the German automaker's latest flagship EV sedan, the New i7, at the driving center. The new model targets drivers who wish to maximize car driving range on a single charge. 

The P5 by Samsung SDI is believed to have a 20% higher enegy density compared with previous EV cells while also lowering manufacturing cost by more than 20%. 

In addition to the New i7, BMW is slated to use the P5 for its iX and i4 models.

Samsung Group purchased 10 New i7s for use as vehicle of choice for the heads of its affiliates. 

In 2019, Samsung SDI signed a long-term business agreement on EV battery supply to BMW worth about 4 trillion won ($3 billion). 

But the value of that agreement has since tripled on the back of surging demand for BMW cars and the growing global EV market. 

To meet the enlarged order, Samsung SDI has ramped up to full capacity the second factory at its Hungary plant, from which it supplies cells for BMW and German automaker Volkswagen.

Industry insiders say Samsung SDI will also supply its next-generation battery, currently under development, to BMW. 

Write to Ji-Eun Jeong, Hyung-Kyu Kim at jeong@hankyung.com
Jee Abbey Lee edited this article.