BERLIN -- BMW is investing 170 million-euros ($181.5 million) in a research center to tailor battery cells to its future needs.
The automaker will use the center to study the cell value creation processes, with the aim of helping future suppliers produce cells to the company’s own specifications, BMW said in a statement.
The production of near-standard samples for next-generation lithium ion battery cells will take place at the center, which will open in Parsdorf, outside of Munich, later this year.
BMW currently has no plans to establish its own large-scale battery cell production.
It will use the new center to produce battery cell samples for batteries designed for use in its Neue Klasse (New Class) electric drivetrain architecture.
BMW wants to increase the energy density of the next generation of lithium ion cells while simultaneously reducing costs from the use of materials and production.
The automaker is also targeting a 30 percent drop in battery prices to take on Tesla in move to using round cells.
Cells typically make up four-fifths of the price of a battery pack and improving technology and efficiency have typically delivered annual cost reductions.
The work in Parsdorf will also focus on additional systems and production processes that could be brought into standard production.
With an eye on sustainability, operations at the center will be run with electricity produced using renewable energy, including from photovoltaic systems on the building’s roof.
BMW produces high-voltage batteries, battery modules and components in its German plants in Dingolfing, Regensburg and Leipzig.
Earlier this month, Europe's first homegrown battery plant began shipments from Northvolt’s plant in Skelleftea, Sweden. Northvolt plans to scale up production over the rest of the year, recently said it had secured more than $50 billion in contracts from automakers including BMW, Volkswagen Group, Volvo and Polestar.
