Tier 1 supplier BorgWarner has formed a strategic partnership with silicon carbide specialist Wolfspeed. Under the multi-year agreement, BorgWarner will invest $500 million in Wolfspeed and will be entitled to up to $650 million worth of silicon carbide devices annually.
BorgWarner expects to earn $4.5 billion in EV-related revenue by 2025—a huge increase compared to less than $350 million in 2021.
“Silicon carbide-based power electronics play an increasingly important role for our customers as our electric vehicle business continues to accelerate,” said Frédéric Lissalde, CEO of BorgWarner. “We believe this agreement helps ensure that BorgWarner will have a reliable supply of silicon carbide devices, which are significant to the company’s inverter growth plans.”