BMW gains rights to buy Chinese battery shares

The car firm has agreed to buy $4.7bn worth of batteries from the company in the next few years

BMW has gained the right to buy a stake in Contemporary Amperex Technology Ltd (CATL) after agreeing to buy $4.7 billion (£3.6bn) worth of batteries from the Chinese company.

This means BMW Brilliance, the German car manufacturer’s Chinese joint venture, is entitled to an equity investment of up to $430 million (£326m) if the company sells new shares, giving it a 0.8% stake at the current stock price.

CATL is the world’s largest electric vehicle (EV) battery manufacturer last year in terms of sales, with shipments of 12GWh sold.

It is estimated to have a 30% share of the Chinese EV battery market.

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