BorgWarner will form a joint venture with Romeo Power Technology to continue building its electrification portfolio and systems expertise. This new JV 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 commercialise cutting-edge technology, delivering even more value to our customers.”
BorgWarner believes bringing together its customer, product launch and quality excellence with Romeo’s leading battery module and pack technology will meet a wide range of customers’ battery EV 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 energise BorgWarner’s existing product portfolio for hybrid and e-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. 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,” said Michael Patterson, Romeo Power Technology Founder and CEO.
The JV will encompass the mobility portion of the battery pack business, initially focused on performance and light vehicles. BorgWarner will also take a 20 per cent equity position in Romeo and will fill two seats on its board. The equity investment and the JV are expected to close in the second quarter of 2019, subject to the satisfaction of customary closing conditions.
BorgWarner’s strategic acquisition of companies involved in vehicle electrification, to complement its organic efforts, started in 2015 with the acquisition of Remy International, Inc. (Remy), a leading manufacturer of rotating electrical components such as alternators, starter motors and electric traction motors for the automotive and commercial vehicle industry. In 2017, BorgWarner acquired Sevcon Inc., a global player in electrification technologies. Sevcon complemented BorgWarner’s power electronics capabilities and also added onboard charging to the portfolio. In February 2019, BorgWarner announced it formed Cascadia Motion and acquired two Oregon-based businesses, Rinehart Motion Systems LLC and AM Racing Inc., and merged their operations into a new, wholly owned company focused on electric and hybrid propulsion solutions for niche and emerging applications. These acquisitions, along with the JV announced, are significant milestones as BorgWarner continues to execute its strategy as a propulsion systems leader for combustion, hybrid and e-vehicles.