Since Tesla has a firm grip on the electric vehicle industry, auto giants like BMW Group are planning to deal with the changing landscape. Although BMW has few EVs in its portfolio, none of them can compete with a Tesla Model 3, in terms of sales or performance.
In recent months, the automaker has made some pretty big announcements regarding the electrification of its current lineup of vehicles. Frank Weber, one of the BMW Group board members, said that by the end of 2023, the company will have 25 electric vehicles on the road. In addition, the German automaker aims to electrify a third of its vehicle range by 2025 and a half by 2030.
Earlier this year, auto enthusiasts wondered how BMW would achieve its goals. However, as we learn the news of the new pilot plant that BMW is going to build, it looks like the automaker can meet its targets within the stated time frame.
Read also: BMW stops production of IC engines by 50%.
BMW to build new battery factory for electric vehicles
As we know, electric car batteries play a very important role in electric vehicles. Therefore, BMW is considering setting up its own facility for the sustainable production of battery cells. According to sources, BMW will build a pilot plant in Parsdorf, near Munich. The plant will come into effective service by the end of 2022.
Unlike Tesla which subcontracts most of its electric battery cells, BMW will design and produce its own battery cells in the new factory.
Milan Nedeljković, another member of the board, told BMW AG, that this will strengthen the company's expertise in the production of battery cells. Moreover, he said, "The new pilot plant will allow us to fill the last gap in the value chain, from the development of battery cells, to the production of powertrain modules and components, to the installation of fully assembled high voltage batteries in our vehicle factories. It will also make BMW the first automaker to cover the entire transmission manufacturing process for electric vehicles.
Will BMW be able to establish a strong EV base like Tesla in the future? Share your opinions in the comments section below.