BorgWarner adds battery packs to portfolio via joint venture with Romeo Power Technology
BorgWarner announced a joint venture with battery module and pack supplier Romeo Power Technology. The joint venture will be split 60/40, with BorgWarner obtaining the larger share.
"This joint venture will not only complement our strong existing propulsion portfolio, but we expect it to fill a gap in the marketplace between battery cell manufacturers and hybrid and electric vehicle customers," said Joel Wiegert, President and General Manager BorgWarner Morse Systems. "We believe our global engineering and manufacturing footprint enables us to quickly commercialize cutting-edge technology, delivering even more value to our customers."
The companies aim to meet a range of customers' battery-electric vehicle needs. The battery modules and packs are expected to include intelligent battery management systems with proprietary algorithms for enhanced performance and cycle life, as well as proprietary thermal engineering for active and passive cooling.
The joint venture will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles. BorgWarner will also take a 20% equity position in Romeo Power Technology and will fill two seats on its board. The equity investment and the joint venture are expected to close in the second quarter of 2019, subject to the satisfaction of customary closing conditions.