With global expertise supplying combustion, hybrid and electric vehicle propulsion solutions, BorgWarner is continuing to build its electrification portfolio and systems expertise by agreeing to form a joint venture with Romeo Power Technology, a technology-leading battery module and pack supplier. This new joint venture will be split 60/40 with BorgWarner obtaining the larger share.
Romeo Power Technology’s Battery Pack
“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.”
BorgWarner believes bringing together BorgWarner’s customer, product-launch and quality excellence with Romeo’s leading battery module and pack technology will meet a wide 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 addition of battery packs will energize BorgWarner’s existing product portfolio for hybrid and electric vehicles that includes electric motors, power electronics, high-voltage battery heaters, eAxle iDMs, onboard battery chargers and much more.
“This joint venture will help Romeo take a big step in the battery mobility sector by adding BorgWarner’s scale and resources,” said Michael Patterson, Romeo Power Technology founder and CEO. “Romeo has a fantastic team that has accomplished a lot in the last four years. And now we’ll continue our progress, with the ability and resources to grow and accomplish our mission of advancing energy technology.”
The joint venture will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles. BorgWarner also will 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.