Why is BMW investing heavily in carbon fibre production?

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BMW is investing heavily in carbon fibre production to reduce vehicle weight, thereby offsetting emissions and future-proofing its automotive portfolio against increasingly stringent environmental regulations.

BMW's significant investment in carbon fibre production is driven by a strategic imperative to create lighter vehicles, which is crucial for offsetting the emissions of traditional combustion engine cars and for enabling the viability of electric vehicles. The company anticipates that a growing global awareness of environmental issues will inevitably lead to stricter emissions standards, rendering large, traditional vehicles increasingly unsustainable. By pioneering mass production of carbon fibre, BMW aims to secure a competitive advantage and ensure the long-term relevance of its "ultimate driving machine" ethos in an evolving automotive landscape.
Addressing Environmental Regulations and Business Threats

The strategic shift towards carbon fibre began approximately six years prior to the article's publication, initiated by then-CEO Norbert Reithofer. His analysis identified increasing environmental consciousness as a significant threat to BMW's business model, predicting that tougher emissions regulations would challenge the sustainability of models like the 5-Series sedan and other larger vehicles. To counter this, BMW recognized the necessity of developing viable electric vehicles, such as the i3, particularly for urban environments where a growing customer base resides. The substantial weight of batteries required for adequate electric range presented a challenge, necessitating lighter vehicle construction to reduce battery size and cost while simultaneously improving handling.
Enhancing Electric Vehicle Performance and Viability

Carbon fibre emerges as the lightest and strongest material available, offering a solution to the weight and cost issues associated with electric vehicle batteries. While traditional electric cars were perceived as sluggish due to heavy power packs, the use of carbon fibre allows for smaller and cheaper battery packs. This not only improves the electric car's acceleration and handling but also its overall range, making it a more practical option for daily use. For instance, the i3, utilising a carbon fibre passenger frame and an aluminium under-body, is approximately 20% lighter than the Nissan Leaf and demonstrates significantly faster acceleration.
Mitigating High Production Costs and Securing Supply Chains

A primary obstacle to widespread carbon fibre adoption has been its prohibitively high cost, estimated at around US$20 per kilogram compared to US$1 for steel. BMW's ambitious goal is to reduce the cost of carbon fibre frames to the level of aluminium by 2020. To achieve this and ensure a stable supply, BMW took an unusual step in the automotive industry by forming a joint venture with SGL Carbon SE in 2009 and acquiring a significant 16% stake in the company. This move was designed to secure influence and control over its carbon fibre supply, countering potential acquisitions by rivals like Volkswagen AG.
Long-Term Portfolio Future-Proofing Beyond the i3

BMW views its investment in carbon fibre not as a strategy limited to the i3 electric car, but as a fundamental, long-term approach to future-proof its entire vehicle portfolio. The company acknowledges that steel, a traditional automotive material, is nearing its limits for weight reduction. By establishing a US$100 million carbon-fibre factory in Moses Lake, Washington, powered by inexpensive hydropower, BMW is positioning itself to integrate this advanced material across its range. Plans were already in motion for carbon components to be incorporated into mainstream models, starting with the next generation of the 7-Series, signalling a broader commitment to lightweight construction.

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Why is BMW investing heavily in carbon fibre production?

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