BorgWarner announces its EV sales are scaling fast

Based on new business awards and actions announced to date, BorgWarner says it believes it is on track to achieve approximately $4.3 billion of electric vehicle (EV) sales by 2025. The company also expects its 2023 EV sales to grow to $1.5 billion to $1.8 billion, up from $870 million in 2022.

BorgWarner is building upon its previously awarded 400V inverter business by now supplying 800V silicon carbide-based (SiC) inverters to “a major global OEM” (unnamed). The start of production is expected in 2025. BorgWarner also says it will supply “a major German vehicle manufacturer” (unnamed) for the European and the U.S. markets with battery cooling plates destined for the carmaker’s next generation of electric vehicles.

In December, BorgWarner announced its intention to execute a tax-free spin-off of its fuel systems and aftermarket segments into a separate, publicly traded company (NewCo). The company expects that the intended separation will better allow BorgWarner to focus resources on attractive organic and inorganic opportunities that position it to deliver and even exceed the goals underlying “Charging Forward.”

BorgWarner says it is committed to reducing its absolute Scope 3 emissions by at least 25% by 2031 from a 2021 baseline. This Scope 3 target, along with BorgWarner’s previously announced target to achieve 85% absolute Scope 1 and Scope 2 emissions reduction by 2030 (from a 2021 baseline), were formally submitted for validation to the Science Based Target initiative (SBTi) in December 2022.

BorgWarner has agreed to acquire the electric vehicle solution, smart grid and smart energy businesses of Hubei Surpass Sun Electric (SSE). The transaction has an enterprise value of up to RMB 410 million (approx. $59.36 million).

Headquartered in Xiangyang, Hubei province, China, SSE’s electrification business supplies patented electric vehicle charging solutions to customers in China and more than 70 other countries. SSE says it has delivered over 50,000 charging points and has led the engineering, procurement, and construction (EPC) of more than 250 charging station sites. SSE’s charging and electrification capabilities in China are expected to complement BorgWarner’s existing capabilities in Europe and North America, the companies say. SSE’s 2022 revenues for the electrification business are expected to be approximately RMB 180 million (approx. $26.06 million).