According to Reuters, EVE Energy signed a contract to become BMW's main battery supplier for the upcoming EVs that are due to hit the European market sometime in 2025.
This year, Tesla started manufacturing a new type of cylindrical batteries that are 46 mm in diameter and 80 mm in length, which are said to improve range and reduce production cost compared to the current 2170 batteries.
China's EVE Energy is planning to build similar battery cells at an upcoming cylindrical battery plant located in the center of the country.
Currently, BMW uses prismatic batteries, which are rectangular in shape and are the norm in the EV market, due to the fact that they can be packed more densely, meaning that they save on manufacturing cost.
However, cylindrical cells could become the more affordable alternative, as technological advancements have allowed them to become more energy-dense.
CATL, one of the largest battery manufacturers, is also due to supply BMW with cylindrical batteries, starting 2025.
Due to the deal with the German car brand, EVE announced back in March that it will be building a cylindrical battery plant in Debrecen, Hungary, which is said to be the first facility of this kind on the continent.
CATL also targets Debrecen as the site of Europe's largest battery plant, as the Chinese battery manufacturer looks to output an annual 100 GWh of battery capacity from the facility.