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BREAKING! Tesla Inspires BMW With 4680 Batteries, New Deal Shows

Tesla Inspires BMW With 4680 Batteries, New Deal Shows

Tesla’s use of 4680 cylindrical batteries appears to be inspiring other automakers like the BMW. Reuters exclusively reports that China's EVE to supply BMW with large Tesla-like cylindrical batteries in Europe.

"EVE has signed contracts to be BMW's primary supplier of the battery cells in Europe for its new series of electric vehicles due to hit the market from 2025, said one of the people who has direct knowledge of the deal," Reurters article says.

BMW has so far been using prismatic cells for its electric cars. Now, while prismatic EV battery cells are practical in the way that they can be densely packed due to their shape, cylindrical batteries have made a lot of headway in the past years. "A lot of this likely has to do with the success of Tesla, whose vehicles have dominated the EV market while being powered by cylindrical cells," thinks Simon Alvarez at Teslarati.

Alvarez notes that EVE is not the only battery maker that is ramping its cylindrical battery production. He says CATL, the world’s largest battery producer and a major Tesla battery supplier, is putting a lot of effort into producing cylindrical batteries. As you may also know, the longtime Tesla partner Panasonic is also poised to build a new battery production facility in Kansas, which will likely produce 4680 cells for Teslas manufactured in Gigafactory Texas.

"If you were a battery manufacturer, the best way to reduce risk and maximize economies of scale and reduce cost per watt is to follow Tesla battery form i.e. 4680. I do not see scenarios where it makes economic sense to produce other forms in the medium term. 4680 should become the industry standard," comments a user Shazam under Teslarati's coverage of the BMW 4680 battery story.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.