BMW Brilliance invests 2.8 billion in CATL, scramble for high-quality battery supply

On July 17, CATL announced that it had signed a strategic cooperation agreement with BMW Brilliance.

The "Strategic Cooperation Agreement" signed by the two parties stipulates that BMW Brilliance will purchase a battery production capacity construction project from CATL, with a project amount of 815 million yuan; BMW Brilliance will purchase designated models of power battery products from CATL on a long-term basis, with an initial advance payment of 2.8525 billion yuan; CATL agrees that the upper limit of investment in subsequent domestic or overseas equity financing will be 2.8525 billion yuan.

CATL stated that after the signing of the agreement, the company will advance cooperation with BMW Brilliance and further enhance profitability by leveraging their respective strengths.

Previously, CATL received a 4 billion euro procurement contract from Germany's BMW Group.

Industry insiders analyzed that the signing of the cooperation agreement between BMW Brilliance and CATL should be the concrete development of the cooperation between BMW and CATL last week.

CATL's initial entry into the power battery field was directly related to its cooperation with BMW. The cooperation between CATL and BMW began in 2012, when the power battery system of BMW Brilliance's first high-end pure electric vehicle, the "Zhinuo 1E", was jointly developed by CATL and BMW.

It is reported that CATL has established cooperative relationships with many brand vehicle manufacturers. According to CATL's first half performance report, the company's net profit excluding non-recurring items increased by 31.43% to 39.56% year-on-year in the first half of the year.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.