BMW secures $A105 million to boost energy density of EV batteries

The Federal Minister for Economic Affairs and Energy is to provide BMW AG with 68 million euros ($A105 million) in funding for the Bavarian automaker’s planned battery projects, which have been designated an Important Project of Common European Intertest (IPCEI) at the EU level.

Energy and economic affairs minister Peter Altmaier said during a virtual meeting with BMW CEO Oliver Zipse: “With the joint European projects, it has been possible to successfully build up the battery value chain in Germany and Europe and to secure sustainable jobs”.

The federal government is supporting BMW in two specific projects in the field of battery storage – both “central to the further expansion of electromobility in Germany”, Altmaier added, noting that the current BMW project “serves the important development of the next generation of lithium-ion cells for e-cars”.

BMW said it was “supporting the ramp-up of a European cell and battery value chain” with the development of “highly innovative and sustainable battery cells” for its forthcoming “Neue Klasse” of e-vehicles, which will be launched by the middle of the decade.

“With the Neue Klasse, we will make a big leap in technology in electric drives,” said Zipse. “We want to significantly increase the energy density of the cells and reduce the costs of material use and production at the same time. We will also significantly reduce the use of primary material to ensure a truly ‘green’ battery.”

The Bavarian state government is also supporting the project as part of the IPCEI funding process.

Altmaier recently assured BMW rival Tesla that it would also make financial support available for battery production at the U.S. company’s new factory near Berlin, which has likewise secured IPCEI funding.