Battery cells for electric cars: EVE Energy supplies BMW

The Chinese manufacturer EVE Energy supplies BMW in Europe with battery cells for electric cars in the 4680 format. BMW follows Tesla in adopting these cells.

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The Chinese manufacturer EVE Energy will become the main supplier of battery cells for BMW electric cars in Europe. This is reported today by the news agency Reuters with reference to insider information. BMW is thus following Tesla in adopting the new cell format. The contracts foresee EVE as the main supplier for BMW and have already been signed.

According to the press release, the cylindrical cells are to be used in the batteries of the new "New Class" vehicle generation planned by BMW for 2025. This could increase the share of battery-electric cars in total global sales to more than half of all vehicles sold before 2030.

BMW CEO Oliver Zipse said in March that BMW is aiming for total sales of 3 million cars before the end of the decade. This is somewhat more optimistic than the previous assumption of at least 50 per cent per year of electric cars sold by 2030. BMW also sees its plans as dependent on the expansion of the global charging infrastructure and the supply of raw materials for batteries.

BMW is therefore abandoning prismatic cells in favour of cylindrical ones, although the former can be packed more densely thanks to their rectangular shape, which makes the batteries potentially smaller. This advantage has made prismatic cells very popular over the last two years. Cylindrical cells, however, have now become much cheaper and, thanks to a higher energy density, enable compact batteries despite their disadvantage in terms of packaging.

The cells with the designation 4680 (diameter 46, length 80 millimetres) are supposed to reduce production costs compared to the smaller 2170 cells used so far. The electric car manufacturer Tesla has already started the production of 4680 cells this year.

CATL is also expected to supply BMW with 4680 cells from 2025, but would not confirm this yet. Last week, the world's largest battery manufacturer, headquartered in China, announced plans to build Europe's largest battery plant with an annual capacity of 100 gigawatt hours in Debrecen, Hungary, to supply European carmakers. According to the contract, the biggest customer will be Mercedes-Benz, which produces its cars in neighbouring Kecskemet.

BMW is building an electric car factory for its "New Class" models in Debrecen, prompting EVE to build its first factory in Europe there. EVE made the announcement in March. The company, founded in 2001 by lithium-ion battery researcher Liu Jincheng, is the eighth largest battery manufacturer in China with a market share of 2.3 per cent, according to the China Automotive Battery Innovation Alliance, while CATL makes 47.6 per cent of all electric car batteries installed in Chinese cars.

(fpi)