BMW

Bavarian brand will switch to cheaper batteries

With the launch of a new platform for electric vehicles in 2025, BMW will switch to cheaper batteries. This decision will be the company's response to the constant increase in the prices of raw materials needed for the production of traction batteries.

Following Tesla, the German manufacturer will ditch prismatic batteries and switch to cylindrical ones. According to Bloomberg sources who wished to remain anonymous, this will allow the company to cut costs by 30%. It is also reported that the same BMW partners working with the company today will be involved in the battery launch: Chinese Contemporary Amperex Technology and EVE Energy, South Korean Samsung and Swedish Northvolt.

Battery cells typically account for 80% of the cost of a battery, and cost savings are achieved annually through technology improvements and production optimization. However, this formula has been threatened by rising prices for raw materials, including nickel and lithium, and analysts' predictions that electric cars will fall in price to the level of cars with internal combustion engines have begun to be questioned.

Automakers paid $118 for every 1 kWh of battery last year, according to research by Bloomberg New Energy Finance, but BMW is already below that level. A Bloomberg source also claims that the Bavarian auto giant's new batteries will differentiate from Tesla cells not only by a more modest price, but also by a higher energy density - the company wants to demonstrate a greater range compared to the models of the American competitor.

Image source: bmwusa.com