Silicon Carbide technology company Wolfspeed and BorgWarner, a sustainable mobility solutions business, have formed a strategic partnership that will see BorgWarner invest U$500m into Wolfspeed’s financing transaction in exchange for a silicon carbide device capacity corridor.
Under the multi-year agreement, BorgWarner will be entitled to purchase up to U$650m of devices each year as BorgWarner’s requirements increase.
“Silicon carbide-based power electronics play an increasingly important role for our customers as our electric vehicle business continues to accelerate,” said Frédéric Lissalde, president and CEO, BorgWarner. “We believe this agreement helps ensure that BorgWarner will have a reliable supply of high-quality silicon carbide devices, which are significant to the company’s inverter growth plans.
“Building upon BorgWarner’s world-class Viper power switches and inverter technology, we are excited about the opportunity to work jointly with Wolfspeed, the leader in silicon carbide, on the potential development of the next generation of silicon carbide products. We believe our relationship with Wolfspeed will drive innovation, accelerate the global transition to electric vehicles, and further BorgWarner’s vision for a clean, energy-efficient world.”
BorgWarner’s Charging Forward strategy targets U$4.5bn of electric vehicle revenue for 2025, compared to less than U$350m in 2021. BorgWarner estimates that the company is on track to achieve an estimated U$4bn of EV revenue by 2025 based on new business awards and acquisitions.
“Today’s announcement demonstrates the creative solutions two collaborative and strategic partners are pursuing to better support the growing demand for silicon carbide devices. BorgWarner has been a strong partner with Wolfspeed for many years, and we are pleased to secure the investment from them which will be used to support our capacity expansion efforts and ensure we have a steady supply of product for their customers,” said Gregg Lowe, president and CEO, Wolfspeed.
“This agreement, combined with our most recent announcement of a multi-billion-dollar materials expansion in North Carolina, confirms the industry transition from silicon to silicon carbide is well underway.”