BMW has inked a deal with Croatia’s Rimac Automobili to provide EV batteries for its upcoming models, signaling a major leap forward in the automotive industry’s push toward sustainability and innovation. Rimac, renowned for its electric hypercars and partially owned by Porsche AG, is expanding its reach as a pivotal supplier of battery systems and powertrain components.

Ramping Up Battery Production

Aiming to supply 100,000 batteries annually between 2024 and 2026, Rimac’s ambitious plan mirrors the auto industry’s accelerated shift to electric mobility and the surging demand for efficient, high-capacity batteries.

The collaboration with BMW highlights a broader industry trend of minimizing EV development costs—a strategy also embraced by Lucid Group in boosting sales by marketing its electric drive technology to other manufacturers, like Aston Martin.

In 2023, Mate Rimac, the founder and CEO of Rimac Group, revealed an alliance with an unnamed German carmaker to incorporate Rimac’s battery systems into a high-performance model, targeting an annual output of about 40,000 units.

While specifics remain under wraps, the agreement notably excludes the cylindrical batteries earmarked for BMW’s ‘Neue Klasse’ EV series, anticipated to commence production in 2025.

BMW’s Electrification Milestones

Last year, BMW marked a significant achievement, with EVs making up 15% of its total sales. The automaker is on track to elevate this share to 50% well ahead of 2030, emphasizing its dedication to electric mobility.

Despite owning a battery cell research center in Germany, BMW strategically collaborates with CATL and EVE Energy for large-scale battery cell production in China and Europe, via multi-billion-euro agreements.

Challenging Asian Dominance

As Rimac provides EV batteries for BMW, this marks a crucial turning point in the EV sector, aiming to counteract Asia’s stronghold on battery technology. It reflects a growing inclination among traditional automakers and high-tech firms to join forces.

These collaborations are vital for the development of innovative, efficient technologies that cater to the strong demand for EVs. Not only does this partnership serve BMW and Rimac’s interests, but it also pioneers a model for future collaborations in the automotive industry, fostering innovation and spearheading the shift towards sustainable mobility.

Image Source: Investindustrial