German conglomerate Bosch has chosen to work with a Chinese battery maker Amperex Technologies. They will supply Bosch with high-quality lithium batteries for their powertrain system.
Details of this long-term cooperation have not been made public; however, given that many people are looking forward to the 48 Volt systems in the years to come, this is a huge arrangement for Amperex Technologies.
This battery manufacturer announced a new partnership 60 days ago with car manufacturer Toyota. They are also in talks with others like Porsche.
Bosch decided not to pursue this battery-manufacturing venture to help fuel electrification of its systems because that would mean starting a completely new department, which is extremely costly. This new deal will ensure Bosch has a steady supply of 48 Volt systems that it supplies to carmakers globally.
This new battery is an essential element in 48 Volt systems that have become popular now that carmakers are working hard to meet global emission standards. This battery is one of the most expensive parts of the 48 Volt systems, so signing a long terms deal with is very important.
Bosch’s rival Continental, a huge player in the supply of 48 Volt batteries, also formed a partnership with Sichuan Chengfei Integration Technology for the supply of $8 Volt Lithium-ion batteries. They operate from China, but they supply batteries to carmakers around the world.
Bosch’s product portfolio of products for the car industry is technically the broadest, and this company is looking to be the top supplier globally of electrified motor vehicle parts. They are also hoping to increase sales to $5.5 billion by the year 2025.
In addition, Bosch expects that its 48 Volt technology will be featured in at least 20 percent of the cars manufactured around the world by the year 2025, with Europe and China leading the rest.