BMW, Rimac partner on high-voltage EV battery technology

BMW and Croatia's Rimac have agreed to partner on high-voltage electric vehicle battery technology in a European tie-up aimed at challenging Asian dominance in the field.

Rimac, an electric hypercar maker owned 45 percent by Porsche, is expanding its reach as a supplier of battery systems and powertrain components to other automakers, with the aim of reaching 100,000 batteries a year between 2024 and 2026.

BMW declined to provide further details on which batteries or models would be developed in the partnership, saying only that it did not apply to the new cylindrical batteries powering the Neue Klasse EV line which goes into production in 2025.

BMW said the long-term partnership is a sign that Rimac is transitioning from niche high-performance solutions supplier to high-volume Tier 1 supplier.

BMW said the partners will release more details about what form the tie-up will take, as well as its scope and content, at a later stage.

BMW expects half of its global sales to be full-electric models by 2030. Last year, the BEV share was 15 percent.

The company has its own battery cell research center in Germany, but has left large-scale development to partners, placing multi-billion-euro orders with CATL, and EVE Energy to produce battery cells in China and Europe.

Automakers are under increasing pressure to cut capital spending on electric vehicles. Premium EV startup Lucid is also trying to augment relatively small sales of its own EVs by selling its electric drive technology to other automakers such as Aston Martin.

Rimac CEO Mate Rimac said in 2023 that an undisclosed German automaker would use a Rimac battery system in a high-performance model with annual production of around 40,000 units starting this year, with more signed up.