Borgwarner plans to enter into a joint venture with Romeo Power Technology to manufacture battery packs for electric vehicles.
The automotive supplier group said the collaboration with Romeo Power, a four-year old startup that makes battery modules and battery packs, will enhance its EV business. The joint venture will focus on the mobility portion of the battery pack business, with products built initially for performance and light vehicles.
Borgwarner will have a 60% stake in the joint venture and will also take a 20% equity position in Romeo Power.
“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,” Joel Wiegert, president and general manager of BorgWarner Morse Systems, said in a press release. Morse Systems is an engine technologies division of BorgWarner.
BorgWarner already makes electric motors, power electronics, high-voltage battery heaters and onboard battery chargers.
Since 2015, the supplier group has been expanding its vehicle electrification business through organic growth and acquisitions. That year, it acquired Remy International, Inc. (Remy), a maker of rotating electrical components.
In 2017, BorgWarned bought electrification specialist Sevcon and earlier this year it formed a new wholly owned company focused on electric and hybrid propulsion products for niche and emerging applications.
The transaction with Romeo Power is expected to close in the second quarter of this year.