BMW EV mass production to be geared up by 2020

Advances in battery technology, pressure to reduce GHGs propel BMW EV development

By 2020, BMW EV mass production will be geared and the German automaker says it will have 12 different electric vehicle models available by 2025.

The company joins many other auto manufacturers racing to catch up with Tesla’s technology. Advances in battery technology and governments around the world cracking down on emissions following the Volkswagen scandal are factors encouraging automakers to step up their EV game.

In 2013, BMW launched the i3. The company says it is readying its factories to mass produce EVs by 2020, should the demand for electric vehicles increase.

“By 2025, we will offer 25 electrified vehicles – 12 will be fully-electric,” Chief Executive Harald Krueger told reporters in Munich. He said the BMW EV line will offer cars with a range of up to 700 km (435 miles).

With BMW’s vehicles sales amounting to 2.34 million last year, the announcement signals a significant shift into electrification for a major manufacturer. On the same day that BMW announced its commitment to electric vehicles, Jaguar said it would offer electric or hybrid versions of all its models by 2020.

And on Wednesday, Nissan unveiled a new design of its Leaf EV complete with a 40 kWh battery. The Japanese automaker says its newest version of the Leaf will provide 150 miles of range under EPA testing and 400 Km under the Japanese JC08 cycle.

Previously, the Nissan Leaf had a 107 mile range. The Leaf still lags behind the Chevy Bolt and Tesla Model 3’s respective EPA ratings of 238 and 220 miles, but Nissan says it will offer a more powerful version with longer range next year.

With the cost of a battery pack with 60 kWh capacity and a 500 Km range costing about $14,000 in comparison to the cost of a gasoline engine coming in at around $5,000, traditional carmakers have been slow to move into the EV market as it remains unprofitable.

Battery costs can make up between 30 per cent and 50 per cent of an EV and adding in $2,000 for the electric motor and inverter, the price gap between gasoline and EV is even wider.

Analysts at Barclays say sometime between 2020 and 2030, capacity investments into the battery sector are expected to bring down EV costs to a “tipping point” where they will reach parity with gasoline-powered vehicles.

As cities threaten to ban combustion-engined vehicles or tax diesel cars more, the total costs involved with owning electric cars could drop below that of gasoline or diesel powered vehicles. By 2035, Europe could become a 100 per cent pure battery EV market.

As for BMW, the company will unveil a new four-door EV at the Frankfurt motor show that begins next week. According to Krueger, the vehicle will be positioned between the i3 city car and the i8 hybrid sportscar.

“We will be increasing the share of electrified models across all brands and model series. And, yes, that also includes the Rolls-Royce brand and BMW M vehicles,” he said.

Mercedes-Benz will unveil the EQA, Daimler’s concept mass market EV at the Frankfurt auto show and Volkswagen will also feature its ID Crozz.

With automakers unveiling new models, now governments are looking for ways to install charging infrastructure to allow car buyers to own electric cars, according to AlixPartners. London says it needs to spend 10 billion euros to install charging stations, but so far, almost none of the funding for the expense has been identified.

Advances in battery technology, pressure to reduce GHGs propel BMW EV development

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