The market for electric cars is always undergoing change. The profit margins on “draft” vehicles are still a very long way off from those of traditionally powered automobiles, despite the fact that an increasing number of manufacturers are making the conversion to zero emissions. This is due to the fact that the cost of battery packs has not decreased. According to the findings of a study conducted by BloombergNEF, the cost of producing one kWh of battery was, on average, 118 dollars in the year 2021.

Therefore, lowering this cost item is absolutely necessary in order to maintain competitiveness. They are well aware of this fact at BMW, which, in an effort to compete with Tesla’s dominant position in the electric vehicle market, is hard at work on the development of its next generation of electric vehicles. According to the statements of some industry insiders, the primary focus of this new generation of electric vehicles should be on entirely new batteries that are capable of reducing production costs by 30 percent in comparison to the accumulators that are currently in use, thereby increasing the margin of profit.

THE SECRET IS IN THE CELLS

These new batteries will find their place in BMW’s next electric car platform, which is scheduled to be released in 2025 along with the first of a number of midsize models, one of which will be an electric version of the 3 Series.

They will use cells with a circular shape instead of the prismatic ones that are already in use, aligning themselves with Tesla’s mode of operation in the process.

When it comes to batteries, cells represent the item with the highest cost, accounting for approximately two-thirds of the overall accumulator. However, owing to this new technology, BMW anticipates that it will be able to lower production costs by almost thirty percent.

All of this will take place while the company will continue to have the batteries produced by its present suppliers, who are CATL, EVE Energy, Samsung SDI, and Northvolt.

NOT ONLY TESLA IN THE SIGHT

With the help of this significant advancement, BMW hopes to not only be a viable alternative to Tesla but also to combat Mercedes’ increasingly powerful message in terms of zero-emission mobility. This is made possible by the fact that BMW has made an essential breakthrough. In point of fact, the Casa della Stella just recently put on a significant “show of strength” with the use of the Vision EQXX, which drove 1,000 kilometers on a single charge and exemplifies the next technological frontier of the Stuttgart giant.