BorgWarner has announced that it has agreed to form a joint-venture (JV) with battery module and pack supplier Romeo Power Technology, continuing to build the former’s electrification portfolio and systems expertise. This new JV will see BorgWarner owning 60 % share. BorgWarner believes this company will meet a wide range of customers’ battery-electric vehicle needs.
The joint venture will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles, the company said. BorgWarner will also take a 20 % equity position in Romeo Power Technology and will fill two seats on its board. It added that the equity investment and the JV are expected to close in the second quarter of 2019, subject to the satisfaction of customary closing conditions.
The battery modules and packs of the JV company are expected to include intelligent battery management systems with proprietary algorithms for enhanced performance and cycle life, as well as proprietary thermal engineering. The addition of battery packs is expected to energise BorgWarner’s existing product portfolio for hybrid and electric vehicles including electric motors, power electronics, high-voltage battery heaters, eAxle iDMs and on-board battery chargers.
Joel Wiegert, President and General Manager, BorgWarner Morse Systems, said this JV will not only complement the company’s strong existing propulsion portfolio. He added that it is also expected to fill a gap in the marketplace between battery cell manufacturers, and hybrid and electric vehicle customers. “We believe our global engineering and manufacturing footprint enables us to quickly commercialise cutting-edge technology, delivering even more value to our customers,” said Wiegert.
This JV will help the company take a big step in the battery mobility sector by adding BorgWarner’s scale and resources, noted Michael Patterson, Founder and CEO, Romeo Power Technology. He said Romeo has a fantastic team that has accomplished a lot in the last four years, and will now continue its progress, with the ability and resources to grow and accomplish its mission of advancing energy technology.