Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
In a bold claim, German car manufacturer, BMW (OTC:BMWYY), has stated its latest battery designs surpass those of electric vehicle behemoth, Tesla Inc. (NASDAQ:TSLA). BMW suggests Tesla “needs to close the gap” with it and not the other way around.
What Happened: A recent report from Teslarati revealed BMW’s optimism about its electric vehicles’ future, attributing this positive outlook to its new battery design. The company believes it is Tesla that needs to catch up, not them.
Expected to be the power source for its next-generation EVs from 2025, BMW’s forthcoming cylindrical battery cell samples are projected to deliver 20% more energy and up to a 30% increase in range. In comparison to current-generation prismatic cells, these batteries are forecasted to slash costs by 50% and reduce production-related carbon emissions by 60%.
In an interview with Automotive News Europe, Milan Nedeljkovic, BMW Group’s production head, emphasized that BMW doesn’t feel the need to catch up to Tesla. Nedeljkovic stated, "Tesla needs to close the gap with us. In fact, we don't see a gap to Tesla."
Despite BMW’s faith in its battery technology, ramping up production of its new EV batteries may present challenges, similar to those Tesla encountered with its 4680 cells.
However, with higher nickel content and reduced cobalt, BMW’s new batteries are more environmentally friendly. The company also intends to reuse 95% of the materials in its high-voltage electric vehicle batteries.
Why It Matters: BMW’s confidence comes on the heels of the automaker’s decision to adopt Tesla’s EV charging standard for its future vehicles. This move signifies a shift in the competitive landscape, as BMW previously lagged behind Tesla in the EV market.
Despite Tesla surpassing BMW as the top luxury car in the U.S. for 2022, BMW’s latest battery technology and production plans demonstrate the company’s commitment to close the gap with Tesla and strengthen its position in the EV market.
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