China’s EVE Energy Co Ltd (300014. SZ) will supply BMW (BMWG. DE) with large cylindrical batteries for its electric cars in Europe, two people with knowledge of the matter said, as the German automaker follows Tesla Inc (TSLA. O) in adopting the new technology.
EVE has signed contracts to be BMW’s primary supplier of the battery cells in Europe for its new series of electric vehicles due to hit the market from 2025, said one of the people who has direct knowledge of the deal.
Tesla this year started manufacturing its new larger-format 4680 cylindrical battery; denoting 46 millimetres in diameter and 80 millimetres in length. It has said it expects the battery to lower production costs; and improve range compared to the current-generation 2170 cylindrical battery.
Guangdong-based EVE’s batteries will be similar in size, said the sources, who were not authorised to speak to media and declined to be identified.
Company filings also show EVE is planning a large cylindrical battery plant in central China.