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BMW Targets 30% Drop in Battery Prices to Take on Tesla

  • Carmaker to switch to new generation of round batteries
  • Rising nickel, lithium prices drive battery costs: BNEF
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BMW AG will switch to the next generation of lower-cost batteries for its new electric-vehicle platform from 2025 as carmakers battle rising prices for raw materials. 

The world’s biggest luxury-car maker will use round cells instead of prismatic ones for its “Neue Klasse” underpinnings, following Tesla Inc.’s steps, who’s been using a cylindrical shape for some time. The change will deliver a 30% drop in costs, according to people familiar with the plans.