BMW Pulls the Plug on its Plans to Switch to Solid-State Batteries

BMW has officially put the brakes on its plans to switch to solid-state batteries, citing high costs as the primary reason. While many automakers are racing to adopt this next-generation battery technology, BMW is taking a different approach. Instead of transitioning to solid-state batteries right away, the German carmaker is doubling down on improving lithium-ion batteries, which they believe still have untapped potential.

Solid-state batteries have been hailed as the future of electric vehicles (EVs). They are lighter, charge faster, and have a longer lifespan compared to traditional lithium-ion batteries. More importantly, they can store more energy, potentially extending the driving range of EVs to match or even exceed that of diesel-powered autos.

However, despite these advantages, BMW has chosen not to adopt solid-state batteries for now. According to Martin Schuster, BMW’s Vice President of Next Generation Battery Technology, the biggest hurdle is cost. While solid-state batteries can already be produced, their high price makes them impractical for mass production. BMW believes that unless these costs come down significantly, it is not yet the right time to make the switch.

While BMW is stepping back, other major car manufacturers are pushing ahead with solid-state battery development. Companies like SAIC (owner of MG), Honda, BYD, and Mercedes are heavily investing in this technology. Some, like Mercedes, claim to have already developed an EV with a 1,000-kilometer range using solid-state batteries.

Despite this progress, BMW remains skeptical. Schuster argues that while these advancements are impressive, they are not yet cost-competitive with lithium-ion batteries. Until solid-state batteries can be produced efficiently at a lower price, BMW sees no urgent need to transition.

Instead of switching to solid-state batteries, BMW is focusing on improving its lithium-ion technology. The company’s Gen6 battery, set to debut in the 2026 BMW X5, is expected to offer better performance and efficiency at a lower cost. This battery will also power future BMW models, including SUVs and vehicles in the Neue Klasse lineup.

BMW believes that lithium-ion batteries still have room for improvement. By refining their chemistry and reducing production costs, the company aims to deliver a high-performance, cost-effective alternative to solid-state batteries at least for now.

Although BMW is holding off on solid-state batteries for the time being, the company has not ruled them out entirely. If production costs drop and the technology becomes more viable, BMW may integrate solid-state batteries into its future EVs. For now, though, the company remains committed to making the most of lithium-ion technology while keeping an eye on industry developments.

Entities like QuantumScape Corp. (NYSE: QS) engaged in the development of solid-state batteries need to take notes from the decision of BMW to abandon its plans to incorporate these batteries into their EVs and come up with strategies to win over electric vehicle makers who are concerned about the current prices of these batteries.

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