German premium carmaker BMW said on Friday that it has inked deals with two Chinese battery makers to power electric models of its Neue Klasse starting from 2025.
CATL and EVE Energy will deliver new cylindrical battery cells, which come with a standard diameter of 46 millimeters, to the carmaker.
Their deals are worth over 10 billion euros ($10.99 billion). The two battery companies will build battery plants in both China and Europe.
BMW said it will also look for companies that can provide such products in North America.
Powered by the new round cells, BMW’s sixth-generation eDrive technology used in the Neue Klasse will be a major leap with regards to energy density, charging speed and range, said the carmaker.
BMW’s cumulative electric vehicle sales are expected to reach 2 million by 2025, and electric vehicles will account for at least half of its global sales by 2030. CATL, the world’s largest battery maker, has been a supplier for BMW for years.