Dive Brief:
- The BMW Group and Rimac Technology have formed a long-term partnership to develop battery technology for electric vehicles, the two companies announced in press releases last week.
- Rimac Technology develops, engineers and produces high-performance battery systems, electric drive units, electronic systems, and user interface components that joint venture Bugatti Rimac uses in its high-performance electric hypercars.
- The electric vehicle technology company says the collaboration with BMW is the largest and most ambitious project the company has ever undertaken with an established automaker and will help it transition from niche company to high-volume Tier 1 automotive supplier.
Dive Insight:
As the auto industry moves towards electrification and away from conventional internal combustion engine powertrain technologies, a growing number of automakers are forming partnerships with companies developing batteries and other advanced electric powertrains for their future EVs.
Rimac Technology, a subsidiary of Rimac Group headquartered in Croatia, is focused on electrification in the automotive sector. Its portfolio includes high-voltage battery packs, e-axles, as well as electronics and software solutions for EVs. Over the past year, the automotive supplier has been focused on growing its portfolio and presence in the industry.
“With the relentless growth of our business, including the opening of Rimac Campus, we’re now ready to deliver large-scale projects for the leading brands in the automotive industry,” Rimac Group Founder and CEO Mate Rimac said in a press release.
A significant portion of the Rimac Campus will be dedicated to the collaboration with BMW, including the installation of automated production lines for batteries.
Other companies, including EV maker Lucid and Hyundai Mobis, have entered into deals to supply advanced EV components to automakers.
Last June, luxury electric automaker Lucid announced a similar supply agreement worth upwards of $450 million with Aston Martin to supply electric vehicle powertrain and battery systems for the British sports car maker’s new EV platform.
In August, Hyundai Mobis announced it will supply Volkswagen AG with battery assemblies for its next-generation electric vehicle platform, and expects to secure more orders for EV components after landing a supplier agreement with Europe’s biggest automaker.
BMW and Rimac Technology will share additional details about their strategic collaboration at a later date, according to BMW’s press release.
