Last week, the dissolution of SB LiMotive, the joint-venture between Bosch and Samsung SDI established in September 2008 for the development of battery systems for electromobility, was announced. Samsung SDI is buying Bosch’s stake in the 50/50 jv for $95-million.
So, is this a sign that electrified vehicles are going to be shunted to the side of the road?
Far from it.
Dr. Bernd Bohr, chairman of the Automotive Group of Robert Bosch GmbH, stated, “When it comes to electromobility, a market with great potential for the future, we have already made a successful start with diverse projects, and are driving forward many other developments. In restructuring our operations, we can respond better to our customers’ requirements with respect to market focus and speed, and will continue to work all out to expand our market activities.”
Bosch will pay $38-million to acquire both Stuttgart-based SB LiMotive Germany and U.S.-based Cobasys.
Bosch spends 400-million euros annually on electromobility.
One interesting aspect of this situation is rather than consolidation, there is actually growth. Both Samsung and Bosch want to be as focused on and as responsive to their automotive customers as they can be.
Apparently the competitors will be amicable toward one another in that they’re going to continue their development and supply agreements, and they’re going to grant each other access to patents.
So look for more, not less, development in an area with tremendous upside.