German automaker BMW announced an investment of CNY10 billion to expand its battery production in China. This is another major investment from BMW to accelerate the shift to electric vehicles following the opening of the Lydia plant in Shenyang, Liaoning province, this June. “This agreement's signing is the latest demonstration of both our confidence in the Chinese market and our commitment to promoting cooperation between China and Germany,” said Jochen Goller, President and CEO of BMW Group Region China. This new extension project is located in the Sino-German (Shenyang) High-end Equipment Manufacturing Industrial Park in the Shenyang Economic and Technological Development Zone.
Once expanded, the high-voltage battery center will become the third global power battery center of the BMW Group. In 2017, BMW established the center, including battery research and development, production and testing.
In June, BMW invested CNY15 billion in its new Plant Lydia in Shenyang, mainly designed to produce the all-electric BMW i3, a mid-sized sports sedan. The Lydia plant will boost the annual output of BMW in China to 800,000 vehicles from 700,000 in 2021. Since 2010, BMW has invested more than CNY83 billion in Shenyang to build a production system integrating research and development (R&D), procurement, and powertrain and vehicle production, making Shenyang the world’s largest production base for BMW Group. Since the establishment of the BMW Brilliance joint venture in 2002, China sales increased to about one-third of the company's global sales in 2021.
According to data from the China Association of Automobile Manufacturers (CAAM), China’s new energy vehicle (NEV) sales amounted to 3.521 million units in 2021, accounting for 53% of the global market share. In 2021, BMW’s NEV sales in China reached 48,000 vehicles, with a 69.6% year-on-year increase. By the end of 2025, BMW plans to deliver 2 million all-electric vehicles worldwide, and by 2030, electric car production is expected to make up 50% of its global market. Experts said China has gained competitive advantages in the middle and upper segments of the new energy vehicle industry chain, especially when it comes to battery manufacturing, battery parts and battery metal processing, the China Daily reports.
