China's EVE Energy to Build Tesla-Like Cylindrical Batteries for BMW

Chinese company EVE Energy is set to supply large cylindrical batteries for BMW's electric cars in Europe.

Tesla pioneered the use of large cylindrical batteries in its cars and BMW is keen to follow suit, penning a new deal with EVE for the batteries starting from 2025.

Neither company has confirmed the deal but Reuters has heard from two people familiar with the matter, one of whom has direct knowledge of the agreement. 

This year, Tesla began manufacturing its large 4680 cylindrical batteries – 46 mm in diameter and 80 mm long. The thinking goes that this battery format will reduce production costs and improve range compared to the existing 2170 cylindrical battery.

The EVE-produced batteries BMW will receive will be similar in size, according to the sources, who were not authorised to speak to the media and declined to be identified.

However, company filings show that EVE is planning to open a large cylindrical battery plant in China. The company did not directly address Reuters questions when asked for comment.

BMW, meanwhile, did say it plans to release some battery-related news in early September but declined to comment further. EVE already supplies batteries to BMW in China. 

China's CATL, the world's largest battery manufacturer, is set to start supplying cylindrical batteries to BMW from 2025 onwards. These are also expected to be larger cells but CATL did not respond to a request from Reuters to comment on planned dimensions.

However, according to the source with direct knowledge of the deal, EVE's new agreement with BMW prompted the Chinese company to announce in March that it would build a cylindrical battery plant in Debrecen, Hungary. The Debrecen site would also be the company's first plant in Europe. 

BMW is working on a plant in the same city where it plans to produce electric cars.