In order to get cylindrical battery cells for its new class of electric vehicles that will debut in 2025, BMW (OTCPK:BMWYY) has struck a long-term agreement with its Chinese partners, CATL and EVE Energy, the German automaker has placed multibillion-euro orders for the production of battery cells at four sites in China and Europe. It is also looking for partners that can help it construct two more facilities in Mexico and the United States.
According to CATL, two of its units will provide BMWYY with batteries that have a standard diameter of 46 mm. The production of the cells will prioritize the use of renewable energy sources and recycled materials.
A 20% improvement in energy density, a 30% increase in charging speed, and a 30% increase in the range are all benefits of the new battery generation, which uses less cobalt and more nickel and silicon.
The agreement verifies earlier suspicions that CATL will provide batteries for the Neue Klasse electric vehicle platform from BMW (OTCPK:BMWYY).
According to a Bloomberg article from May, the automaker will adopt Tesla’s example and switch to spherical batteries for the Neue Klasse platform instead of prismatic ones, which may reduce prices by 30%.
Examining the H1 2022 Results
As per BMW’s recently published H1 financials, first-half volumes as a whole were down 13.4%, and the second quarter saw a 19.5% YoY decline. The auto industry is quite accustomed to this. It is a circumstance, nevertheless, where businesses that concentrate more on margins have an advantage over those that bet on volumes.
Due to the zero-Covid approach, which resulted in new lockdowns and lowered BMW’s sales by 28.3%, China was particularly hard hit during the most recent quarter. According to this table, BMWYY sold 43% of its cars in Asia, with China accounting for the majority (80%). Accordingly, China accounts for around 35% of global sales.
Featured Image- Megapixl @Uwittrock