BMW and Rimac have reached an agreement to collaborate on high-voltage electric vehicle battery technology, marking a European initiative aimed at challenging Asian dominance in this sector.
Rimac, a Croatian electric hypercar manufacturer with 45% ownership by Porsche, is expanding its role as a supplier of battery systems and powertrain components to other OEMs. Their goal is to produce 100,000 battery units annually by 2026.
While BMW declined to provide specific comments on the partnership, they acknowledged that Rimac’s transition from a niche manufacturer to a high-volume Tier 1 supplier signifies a significant step. BMW plans to unveil more details about the partnership’s nature, scope, and content in the future. With ambitions for half of its global sales to comprise fully electric models by the end of the decade, BMW’s collaboration with Rimac is poised to play a key role.
Although BMW operates its own battery research center in Germany, it has opted to outsource large-scale development to partners. This includes placing substantial orders with CATL and EVE Energy for cell production in both China and Europe.
The specific BMW models set to benefit from the joint venture with Rimac, estimated at 40,000 units annually, have yet to be disclosed.
According to BMW’s chief financial officer Walter Mertl, the year 2023 marked a tipping point for the combustion engine. BMW’s global vehicle deliveries in 2023 reached 2,555,341 units, a 6.5% increase over the previous year, with electric cars (BEVs) accounting for 15% of total sales, amounting to 376,183 units.
Mertl emphasized BMW’s increased investment in the global ramp-up of e-mobility, focusing on new models, the electrification and digitization of the vehicle fleet, and automated driving.
BMW’s commitment to electric mobility is further underscored by its €650 million ($A1.1b) investment to transform its Munich factory into an all-electric production facility by the end of 2027.
“Future growth will primarily come from battery electric vehicles,” stated Mertl, reflecting BMW’s strategic direction towards electric mobility.
2023 European total vehicle sales mix by fuel type:
| Battery Electric (BEV) |
14.6% |
1,533,000 units approx. |
| Diesel |
13.6% |
1,428,000 units approx. |
| Hybrid Electric (HEV) |
25.8% |
2,709,000 units approx. |
| Petrol |
35.3% |
3,706,500 units approx. |
| Plug-in Hybrid (PHEV) |
7.7% |
808,500 units approx. |
| Other |
3.0% |
315,000 units approx. |
With ACEA, Automotive News Europe, and Fleet Europe
