BMW switches to cheaper batteries and cuts costs by 30

BMW switches to cheaper batteries and cuts costs by 30%

With the release of a new electric vehicle platform in 2025, BMW will switch to using cheaper batteries. With this decision, the company is reacting to the constantly increasing raw material prices for the production of traction batteries.

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After Tesla, the German manufacturer will abandon prismatic batteries and switch to cylindrical ones. According to sources who wish to remain anonymous Bloomberg, this will allow the company to reduce costs by 30%. It is also reported that the same BMW partners who are working with the company today will be involved in releasing batteries: Chinese Contemporary Amperex Technology and EVE Energy, South Korean Samsung and Sweden Northvolt.

Battery cells typically account for 80% of the cost of a battery, and cost savings are realized annually through technology improvements and production optimization. However, this formula was threatened by rising prices for commodities, including nickel and lithium, and analysts’ predictions that electric cars would fall in price to the level of internal combustion engine cars began to be called into question.

According to research from Bloomberg New Energy Finance, automakers paid $118 per 1kWh of battery last year, but BMW is already below that level. A Bloomberg source also claims that the new batteries from the Bavarian car giant will differ from Tesla cells not only in terms of a more modest price, but also in terms of higher energy density – the company wants to use this to demonstrate an increased range over the models of the American competitor.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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