While other automakers rethink their plans as the global appetite for EVs slows down, BMW is vowing to stay the course. The German automaker says it still plans to offer an EV in every vehicle segment across all of its brands, including Mini and Rolls-Royce. And most importantly, BMW is investing billions of dollars in new battery technology, including a new controller it calls the “Energy Master.”
As the political winds shift, BMW hopes doubling down on EV technology can allow it to take the lead from Tesla, fend off the coming tidal wave of Chinese EVs, and grow its market share.
Last March, BMW announced its Neue Klasse, the new all-electric architecture that will underpin its future EVs. As the company continues to trickle out details of the new technology, it invited a group of journalists to Munich last month to show off its newly developed battery cells, the Energy Master control module, and the Neue Klasse motors — all developed in-house.
The new powertrain promises better efficiency, more range, and more energy density. The cylindrical batteries alone offer 30 percent more range, 30 percent faster charging, and 20 percent more energy density, BMW claims.
Investing in the transition to electric
Developing all of those technologies is expensive work. The electrification investment that BMW has made alone represents “the project of the century, and the biggest investment in the history of the company,” BMW AG Group board member Joachim Post said. While BMW is giving itself some wiggle room on when future electrified vehicles will appear in various markets around the world, Post said that BMW is aiming to decarbonize the entire vehicle lifecycle by 40 percent by 2030.
“BMW is a leader in e-mobility,” Post said during a roundtable discussion, noting that the company sold 420,000 EVs worldwide in 2024, representing a 30.5 percent increase year over year. “Due to the wide portfolio, we have in every relevant segment at least one [battery-electric vehicle]. I think that’s a clear advantage. We’re technology open because markets and customers decide which technology to choose.”
The new powertrain promises better efficiency, more range, and more energy density
BMW is one of the smaller automotive manufacturers by volume in the world, and its investment and commitment to electrification is significant. The company has been investing in electrification since 2009, when the Mini E was launched. The company wouldn’t share a total investment figure, but back-of-the-envelope math indicates it’s well into the billions of dollars.
The company has developed new technology to make its EVs lighter, more efficient, and cheaper to manufacture, all while keeping production lines around the world working to turn out a wide variety of vehicles with different powertrains. While China’s EV innovation and the US’s growing hostility toward EVs pose significant headwinds, BMW seems unfazed and is continuing to move forward.
More efficient and affordable battery technology
BMW’s new so-called “Gen6” battery pack, which will underpin the Neue Klasse vehicles, will filter throughout the company’s brands. The previous Gen5 batteries are prismatic battery packs installed in the vehicle’s underbody. These rectangular CATL and Samsung SDI batteries are packaged together in large rectangular packs, used in vehicles like the BMW i3 and i4.
These in-house-developed Gen6 cylindrical battery cells offer 30 percent more range, up to 30 percent faster charging speeds, 20 percent more energy density, and are 50 percent cheaper to build.
BMW says its Gen5 batteries are reliable but can be difficult to replace if they fail. Gen5 battery cells can’t be individually repaired; instead, the entire battery pack that underpins the car has to be replaced, which can be costly and wasteful. The Gen6 batteries are lighter, smaller, and more efficient. And, since they are cylindrical, like Tesla’s batteries, they can be individually replaced if they fail.
The electrification investment that BMW has made alone represents “the project of the century, and the biggest investment in the history of the company”
The Gen6 batteries will be installed in the company’s Neue Klasse vehicles well before the rest of the car is built, at the stage where the vehicle is still a “body in white” skeletal frame. The new cell-to-pack model allows for the pack-to-open-body process to install the battery pack, with its control module situated under the rear seats. The battery pack becomes the structural floor of the vehicle rather than a bolted-on piece, adding rigidity and torsion strength, making it part of the 800-volt architecture rather than a platform that future vehicles sit on. There also isn’t any electronic packaging between the cells, making them easier to recycle and replace since the new battery packs are controlled by the new “Energy Master,” which sits atop the Gen6 pack. (More on that later.)
The cylindrical batteries are made of thin copper sheeting, covered in a slurry, then wound tightly, capped, and filled with electrolyte. They come in two formats: 4695 and 46120 (46mm in diameter, and either 95 or 120mm in height). The company says that the new pack can charge up to 300km (186 miles) in 10 minutes when plugged into a DC fast charger. The flatter battery pack design will make it easy to install in the company’s full line — even the lower-cost models — though BMW was reluctant to say if the technology will result in lower prices for consumers.
Moreover, BMW is teaming up with SK tes to recycle old EV batteries into high-quality metals that can be reused in new battery production. The aim is to create an entirely circular chain of production for the company’s batteries.
It’s unique for an automaker to develop its own battery chemistry and manufacturing processes in-house, and it’s even more unique that BMW has said it’s not looking to become a battery manufacturer. The company says it’s been approached about potentially manufacturing its battery technology for other industries like aerospace, but declined.
Image: BMW
BMW plans to source the batteries from EVE Energy and CATL in China but will assemble the battery packs itself at manufacturing sites near where the vehicles will be built — something that BMW refers to as “local-for-local” manufacturing. One such facility is currently being built in Woodruff, South Carolina, near BMW’s plant in Spartanburg, where it manufactures the X3 both for the US market and for export to countries around the world. This local-for-local approach is partially to deal with the increasing regionalization that’s taking place in countries like the US, where President Donald Trump’s tariffs would deeply impact the automotive sector. It’s also to stabilize some of the supply chain issues that wreaked havoc during the covid-19 pandemic.
“Our philosophy is, the production follows the markets. The supply chain follows the production. We have a huge footprint in the US,” Post said in response to a question about Trump’s tariff threats. “When we talk about aluminum and steel or tariffs, the point is that we have a huge footprint. It makes us more independent with these things,” he continued.
On top of these new Gen6 battery packs sits what BMW calls the “Energy Master.” This “penthouse” will sit under the rear seats in Neue Klasse vehicles and act both as a battery controller and power supply. The Energy Master offers power management for both the high voltage vehicle and drivetrain systems and the low voltage systems in the vehicle like windshield wipers and climate control.
The Energy Master can switch between 400 volts and 800 volts based on the charger output, which BMW argues is a more efficient and intelligent way to charge. It will also handle bidirectional charging, allowing the Neue Klasse models to handle vehicle-to-home (V2H), vehicle-to-load (V2L), and vehicle-to-grid (V2G) functions.
On top of these new Gen6 battery packs sits what BMW calls the “Energy Master”
BMW manufactures the Energy Master in-house at its retooled plant in Landshut, Germany, about an hour from Munich. The factory uses robots on a highly flexible and clean-room-style assembly line. It also relies heavily on AI-assisted image recognition to ensure that parts are installed correctly. The company is trying out dexterous robotics that can carefully grasp, manipulate, and plug in wiring harnesses on the Energy Master, a task currently done by human workers. Once an Energy Master is assembled and sealed, factory workers check the robots’ work and test the Energy Masters before shipping them out to BMW’s worldwide locations for installation on the new battery packs.
Drivetrain changes and plant upgrades
BMW is no stranger to making electric cars, but retooling for new products, training associates, and retrofitting old plants requires a massive investment in manufacturing locations around the world — including at the company’s oldest plant in the heart of Munich.
The three-story plant is currently in the process of being retrofitted, deconstructed, and rebuilt (all simultaneously), while still continuing to produce 1,000 vehicles with different powertrains (ICE vehicles and EVs), all on the same line. It’s a massive investment of €650 million ($682 million) that not only requires incredible logistics management but also the retraining of existing employees, some of whom have worked on the line for more than 20 years.
“Our philosophy is that production follows the markets, and the supply chain follows the production. We have a huge footprint in the US,” Post said. “We are the largest exporter by value from the US and Germany, and sometimes people forget these things.”
All of this work comes together to keep BMW’s products, supply chain, and manufacturing line flexible in a political world that is increasingly hostile toward electrification and green technology. BMW says it is unwavering in its commitment to the massive changes taking place in transportation and has put its money where its mouth is on the future of electrification.
