Chinese battery maker EVE to supply BMW with Tesla-like cylindrical batteries in Europe

eve supply bmw cylindrical batteries

China’s EVE Energy Co Ltd to supply BMW with large cylindrical batteries for its electric cars in Europe, as the German automotive giant will follow Tesla Inc. in adopting the new technology.

EVE signed contracts to become BMW’s prime supplier of the battery cells in Europe for its new series of electric vehicles (EVs) due to hit the market in 2025, said one of the people with knowledge of the deal.

This year, Tesla started manufacturing its new larger-format 4680 cylindrical battery—denoting 46 millimeters in diameter and 80 millimeters in length. The EV maker expects the battery to decrease production costs and improve range compared to the current-gen 2170 cylindrical battery.

Headquartered in Guangdong, EVE’s batteries supplied to BMW will be similar in size, the sources reported.

Company filings also show EVE is planning a sizeable cylindrical battery plant in central China.

The shift by BMW, which currently uses prismatic batteries, underlines the growing momentum for larger-format cylindrical batteries.

Chinese battery maker CATL, the world’s largest battery maker, is also slated to supply cylindrical batteries to BMW from 2025.

Lithium-ion battery researcher Liu Jincheng founded EVE in 2001. The firm is also a supplier to Xpeng Inc. and is a much smaller player than CATL. According to China Automotive Battery Innovation Alliance (CABIA)’s data, EVE ranks eighth with a 2.3% market share in China.