BMW EVs Will Shift From Prismatic To Cheaper Cylindrical Battery Cells

German Auto major BMW has sealed a deal with CATL, Chinese battery manufacturer, for its future electric cars. BMW will use the cylindrical lithium-ion battery cells for EVs starting in 2025. Its significance lies in the fact that BMW has so far used the prismatic cell format for its EVs. Although the prismatic cells are also manufactured by CATL , yet the shift to cylindrical battery at as large scale as this has not been explained either by BMW or CATL.

However, one of the explanations making the rounds is that the new cell is expected to cut down the manufacturing cost by as much as 30% against the current prismatic format batteries. Currently working on its Neue Klasse, a new dedicated architecture for its future EVs, BMW may have put in a new strategy to explore a new bigger market by bringing down the price. The cylindrical lithium-ion batteries are expected to power the Neue Klasse which is slated to debut in 2025.

Significantly, Tesla has also launched its in-house production of 4680 type cylindrical battery cell, stepping up from 2170 type and previous 1865 type. While the new agreement between BMW and CATL focuses on cylindrical type battery format, the exact type of the battery is yet to be disclosed by any of them.

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Corroborating the explanation mentioned above, a Bloomberg report lends it credibility and says that the reason behind the shift to cylindrical cell format is that the automakers want to cut down the manufacturing cost. Published in 2021, the report reads further that the carmakers are paying a price of $118 per KWh on an average. The report also claimed that battery cells typically make up four-fifths of the price of a battery system cost. The substantial hike in battery material cost is the reason why car manufacturers are looking for new technology to bring down the production cost and cylindrical cell is the answer.