Gasgoo Munich- On Feb. 25, German Chancellor Merz led a 30-person economic delegation to China — described as the "most lavish" since the Merkel era. At the same time, BMW Group Chairman Oliver Zipse and CATL signed a strategic cooperation memorandum of understanding in Beijing.
The agreement steered clear of specific procurement volumes or prices. Instead, it focused on a topic that barely registered a decade ago: collaborative decarbonization across the power battery supply chain to systematically reduce the carbon footprint of electric vehicles.
As the global auto industry's electrification race enters its second half, most companies are still struggling with battery capacity and costs. Yet this handshake between BMW and CATL quietly elevates the competitive dimension to the realm of "carbon footprints."
This is not just a deepening of ties between two companies; it signals a shift in the localization strategy of multinational auto giants in China. The focus is moving from importing capacity and technology to co-creating rules and standards.
New Track Behind the "Battery Passport": From Scale Competition to Authority Over Green Standards
In the memorandum signed this time, what matters most is not the word "supply," but the technical details of "collaborative decarbonization."
Under the agreement, acting as trusted long-term partners in battery production, joint R&D, and technical innovation, the two will launch a pilot for cross-border data transfer under battery passport scenarios. They will deepen cooperation on trusted data exchange, battery carbon footprint accounting methodologies, and innovative carbon accounting tools. By leveraging the trusted and standardized data ecosystem Catena-X, they aim to support unified technical standards and push for a coordinated, science-based policy framework to foster long-term industry stability.
The so-called "battery passport" is essentially a "digital archive" for the entire lifecycle of a power battery. It records carbon footprint data from every stage — mineral mining, raw material processing, cell manufacturing, and recycling.
With the EU's new battery regulations set to be fully implemented, this is no longer an optional "green bonus" for companies. It is an "entry ticket" to the European market.
The collaboration between BMW and CATL lands exactly on the critical milestone of 2026.
As far back as December 2024, the two confirmed that CATL would supply cylindrical batteries for BMW's Neue Klasse pure electric models starting in 2026. This means the domestically produced long-wheelbase version of the Neue Klasse BMW iX3 — set for its global premiere at the Beijing Auto Show in April — must meet stringent carbon tracing requirements from day one.
Zipse pointed to the essence of the deal during the signing: "Sustainable development has become the greatest common denominator in German-Chinese and EU-China relations."
Amid rising protectionism and the complex restructuring of global supply chains, BMW's choice to pursue "data sharing" and "standard alignment" with CATL on carbon accounting methodologies is effectively building a "shared moat" against future trade barriers.
When power batteries are no longer just the flow of physical products but the flow of technology with traceable data and international green certification, whoever masters the methodology of carbon footprint accounting will set the agenda in the next round of global competition.
A Qualitative Shift for a 120 Billion Yuan Investment: Localization Goes From "Adapting to China" to "Defining the World"
Another layer of significance to this signing lies in its timing: it coincides with a tipping point in BMW's localization in China.
Since 2010, BMW has invested over 120 billion yuan in its Shenyang production base, laying out four R&D innovation centers and three software companies in China. Such heavy-asset investment was often viewed as "using the China market to support local operations." But the arrival of the Neue Klasse iX3 will break that logic.
Set for a global premiere at the Beijing Auto Show in April 2026, this model is not only BMW's first domestically produced Neue Klasse vehicle but also "the most localized BMW to date." Its core digital experience features are jointly designed and developed by global and Chinese R&D teams.
CATL's role in this process is also deepening.
From the 2022 cylindrical battery supply agreement to today's deep integration on carbon accounting tools and cross-border data, the trajectory of cooperation is clear. As BMW's Neue Klasse platform takes root in China, it needs more than a battery factory that can simply follow specifications. It needs a partner that can collaborate on underlying technical standards and green certification systems.
Notably, this signing took place under the endorsement of the German Chancellor's visit to China.
Image Source: MINI
Zipse has repeatedly emphasized on various occasions: "Companies that ignore China's vast market and broad innovation potential will inevitably miss out on major opportunities for global economic growth and commercial success."
This is less diplomatic rhetoric and more a clear-eyed judgment of the current global automotive landscape. As China reclaims its spot as Germany's largest trading partner in 2025, and as Chinese battery companies establish a generational lead in tech iteration speed and supply chain completeness, any automaker aspiring to global competitiveness must accept a fact: the R&D experience and green standard practices accumulated in China have the power to feed back into the world.
Joint accounting of battery carbon footprints is a proactive response to the global regulatory environment. BMW's electrification layout in China is moving from "in China, for China" to "in China, defining the world."
