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BMW exec expresses reservations on electric car battery costs: ‘It’s a nightmare’

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7 years ago

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BMW board member Klaus Frölich recently expressed his reservations about the costs of batteries in electric cars. In a recent statement, the 58-year-old senior BMW executive noted that electric vehicles would “never” be less costly than cars powered by fossil fuels.

Frölich, who played a part in the development of the company’s electric mobility initiatives like the BMW i3, noted that the culprit for the costs of EVs will always be their batteries. The senior executive stated that lithium-ion cells that can store the standard 1 kWh unit of electrical energy cost around €100 to €150 ($114 to $172). Thus, in electric vehicles with battery packs that are 90-100 kWh, the cost of the battery alone would always be incredibly high.

“It’s very simple. You can produce whole cars, only with the cost of the battery,” he said.

Frölich further elaborated, stating that the costs of lithium-ion batteries would likely remain costly, even if they are being produced in large quantities. The senior BMW exec notes that cobalt, in particular, would probably keep battery prices high, since it is a crucial ingredient of lithium-ion battery cells. That said, Frölich stated that BMW is nonetheless working to secure low prices for cobalt until 2030.

“When everybody wants to have cobalt, the prices of cobalt will not go down, they will go up. So, it’s a nightmare that an electrified vehicle will cost the same as a combustion-engined car,” he said.

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While Klaus Frölich’s latest remarks could easily be dismissed as criticism from an electric car skeptic, the executive is anything but an EV naysayer. Over the years, Frölich has played a key part in the development of BMW’s green vehicles like the i3 and the faster, more attractive i8. Just last year, Frölich spoke during BMW’s 2017 Tech Workshops, where he discussed the German legacy automaker’s plans for an electrified future, at one point even noting that “electro-mobility is the new normal” for the carmaker. 

In a way, Frölich’s recent statements might be coming from firsthand experience. BMW, after all, is currently starting to adopt a Tesla-like approach in the development of its vehicles’ battery cells. During the unveiling of the iNEXT concept vehicle, BMW announced that it had developed its own battery cells, which, in turn, will be utilized by its upcoming electric cars and hybrid vehicles. BMW has partnered with Chinese battery maker CATL to manufacture its cells.

BMW’s adoption of an in-house approach to battery cell design and production was likely pushed by German Chancellor Angela Merkel’s initiatives earlier this year. Back in March 2018, Merkel’s government took particular notice on German automakers such as Daimler, BMW, and Volkswagen and their dependence on Asian companies for the battery needs of their electric cars. Addressing the carmakers last June, Merkel urged the legacy automakers to start catching up. Considering Frölich’s recent statements, though, BMW might be learning that battery technology is not very easy to master.

Tesla, for its part, continues to refine its battery tech. The electric car maker’s batteries have used less cobalt over the years, and Elon Musk has announced on Twitter that the company is aiming to use no cobalt at all in the future. During the 2018 Annual Shareholder Meeting, Musk further mentioned that Tesla is closing in on a cost of $100 per kWh at the pack level.

“We think at the cell level probably we can do better than $100/kWh maybe later this year depending upon stable commodity prices. With further improvements to the cell chemistry, the production process, and more vertical integration on the cell side, for example, integrating the production of cathode and anode materials at the Gigafactory, and improved design of the module and pack, we think long-term we can get below $100/kWh at the pack level,” he said.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla pushes crazy ‘Luxe’ incentive package on flagship Model S and X

Tesla is pushing more customers to the Model S and Model X with a new incentive package.

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2 hours ago

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August 16, 2025

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Credit: Tesla

Tesla has pushed a crazy new incentive package, known as the “Luxe Package,” on the flagship Model S and Model X, along with a $10,000 price increase on each trim level.

The move aims to likely bolster margins for the company on the two cars while also giving those who choose to buy the Tesla lineup mainstays a variety of awesome advantages, including Free Supercharging, Full Self-Driving, and other add-ons.

Tesla is offering a crazy Supercharging incentive on its two ‘sentimental’ vehicles

Last night, Tesla launched the “Luxe Package” for the Model S and Model X, which includes the following four add-ons:

  • Full Self-Driving (Supervised) – Your car will be able to drive itself almost anywhere with minimal driver intervention
  • Four-Year Premium Service – Wheel and Tire Protection, Windshield Protection, and Recommended Maintenance
  • Supercharging – Charge for free at 70,000+ Superchargers worldwide
  • Premium Connectivity – Listen to music, stream movies, monitor live traffic, and more – no Wi-Fi needed

Full Self-Driving is priced at $8,000. Free Supercharging for the life of the car is between $10,000 and $15,000 over the life of the vehicle, although Tesla has valued it at $5,000 in recent promotions.

Free Premium Connectivity is roughly $1,000, and the four-year tire, wheel, windshield, and maintenance plan is about $3,200.

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In all, the value is over $25,000, but this is loosely based on usage.

The Model S and Model X are low contributors to Tesla’s overall sales figures, as they make up less than five percent of sales from a quarterly perspective and have for some time.

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As they are certainly the luxury choices in Tesla’s lineup, the Model 3 and Model Y are the bigger focus for the company, as a significantly larger portion of the company’s sales is made up of those vehicles.

The Luxe Package is an especially good idea for those who drive high-mileage and plan to use the Model S or Model X for commuting or long drives. The free Supercharging makes the deal worth it on its own.

As for the price bumps, each of the vehicles are now priced as follows:

  • Model S All-Wheel-Drive: $94,990
  • Model S Plaid: $109,990
  • Model X All-Wheel-Drive: $99,990
  • Model X Plaid: $114,990
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Tesla Roadster could have a formidable competitor with BYD’s 3000-HP supercar

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate, which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

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4 hours ago

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August 16, 2025

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The Tesla Roadster is on the way, and yes, we know we’ve heard that for quite a few years. But when it comes, it might have a formidable competitor, and it might come from no one other than Chinese rival BYD.

BYD’s Yangwang U9 Track Edition is a new configuration of the U9 supercar that hit the Chinese Ministry of Information Technology (MIIT) database recently.

The vehicle was first spotted on the MIIT database by CarNewsChina. It will have a quad-motor powertrain, each dedicated to one wheel. Instead of the 1,287 horsepower that comes with the standard U9 configuration, the Track Edition will have 2,977.

There are only two cars that even come close in terms of horsepower: the Lotus Evija with 1,972 and the Rimac Nevera at 1,914 horsepower. The Tesla Roadster is expected to have somewhere around 1,000 horsepower.

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate (without the SpaceX package, which brings the projection to 1.1 seconds), which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

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The Roadster also beats the U9 Track Edition in projected top speed and range. The Roadster could top out at over 250 MPH, compared to the 217 conservative projection for the U9 Track Edition.

Range on the Roadster is 620 miles, beating 280 miles for the BYD.

The U9 Track Edition will also have some additional features compared to its base model. These include some aerodynamic additions, like a carbon fiber rear wing, diffuser, and an adjustable front splitter and adjustable rear wing.

The latter two are optional, but if you have enough scratch to drop on this car, you’re probably adding those two features as well.

We hope that both the Roadster and U9 Track Edition will hit a drag strip, road course, or even a superspeedway for some racing. It would truly be something for EV fans to drool over.

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Tesla is breaking even its own rules to cap off an intense Q3

Tesla is pulling out all the stops to have a strong Q3 as the EV tax credit will phase out.

Published

7 hours ago

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August 16, 2025

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Credit: MarcoRP | X

Tesla is breaking its own rules by advertising on various platforms in an effort to sell as many cars as possible before the end of the $7,500 electric vehicle tax credit.

Tesla has had a very polarizing perspective on advertising. Over the years, it has taken on different attitudes toward spending any money on marketing. It has instead put those dollars into research and development to make its vehicles more advanced.

Back in 2019, Tesla CEO Elon Musk talked about the company advertising its vehicles and energy products:

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In 2021, in response to analyst Gary Black, who has pushed for Tesla to have a PR or marketing department, Musk said:

However, this did not hold as Tesla’s strategy for the long haul. While Musk did resist advertising for a long time, Tesla started placing ads on platforms like X, Google, and YouTube several years back. It’s pretty rare that Tesla pushes these ads, however.

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Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk

The company’s stance on setting aside capital for advertising seems to be circumstantial. Right now, it is working to sell as many vehicles as it can before the tax credit comes to a close.

As a result, it is pushing some ads on YouTube:

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It’s a move that makes sense considering the timing. With just six weeks roughly left in the quarter, Tesla is going to work tirelessly to push as many cars into customer hands as possible. It will use every ounce of effort to get its products on people’s screens.

Tesla counters jab at lack of advertising with perfect response

Throw in one of the many incentives it is offering currently, and there will surely be some takers.

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