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BMW exec expresses reservations on electric car battery costs: ‘It’s a nightmare’
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.
-->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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News
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
The refreshed Tesla Model 3 has won the DRIVEN Car Guide AA Insurance NZ Car of the Year 2025 award in the Passenger Car category, beating all traditional and electric rivals.
Judges praised the all-electric sedan’s driving dynamics, value-packed EV tech, and the game-changing addition of Full Self-Driving (Supervised) that went live in New Zealand this September.
Why the Model 3 clinched the crown
DRIVEN admitted they were late to the “Highland” party because the updated sedan arrived in New Zealand as a 2024 model, just before the new Model Y stole the headlines. Yet two things forced a re-evaluation this year.
First, experiencing the new Model Y reminded testers how many big upgrades originated in the Model 3, such as the smoother ride, quieter cabin, ventilated seats, rear touchscreen, and stalk-less minimalist interior. Second, and far more importantly, Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
FSD changes everything for Kiwi buyers
The publication called the entry-level rear-wheel-drive version “good to drive and represents a lot of EV technology for the money,” but highlighted that FSD elevates it into another league. “Make no mistake, despite the ‘Supervised’ bit in the name that requires you to remain ready to take control, it’s autonomous and very capable in some surprisingly tricky scenarios,” the review stated.
-->At NZ$11,400, FSD is far from cheap, but Tesla also offers FSD (Supervised) on a $159 monthly subscription, making the tech accessible without the full upfront investment. That’s a game-changer, as it allows users to access the company’s most advanced system without forking over a huge amount of money.
News
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out.
It appears that the Tesla AI team burned the midnight oil, allowing them to release FSD V14.2.1 on Thanksgiving. The update has been reported by Tesla owners with AI4 vehicles, as well as Cybertruck owners.
For the Tesla AI team, at least, it appears that work really does not stop.
FSD V14.2.1
Initial posts about FSD V14.2.1 were shared by Tesla owners on social media platform X. As per the Tesla owners, V14.2.1 appears to be a point update that’s designed to polish the features and capacities that have been available in FSD V14. A look at the release notes for FSD V14.2.1, however, shows that an extra line has been added.
“Camera visibility can lead to increased attention monitoring sensitivity.”
Whether this could lead to more drivers being alerted to pay attention to the roads more remains to be seen. This would likely become evident as soon as the first batch of videos from Tesla owners who received V14.21 start sharing their first drive impressions of the update. Despite the update being released on Thanksgiving, it would not be surprising if first impressions videos of FSD V14.2.1 are shared today, just the same.
-->Rapid FSD releases
What is rather interesting and impressive is the fact that FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out. This bodes well for Tesla’s FSD users, especially since CEO Elon Musk has stated in the past that the V14.2 series will be for “widespread use.”
FSD V14 has so far received numerous positive reviews from Tesla owners, with numerous drivers noting that the system now drives better than most human drivers because it is cautious, confident, and considerate at the same time. The only question now, really, is if the V14.2 series does make it to the company’s wide FSD fleet, which is still populated by numerous HW3 vehicles.
News
Waymo rider data hints that Tesla’s Cybercab strategy might be the smartest, after all
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota Connected Europe designer Karim Dia Toubajie has highlighted a particular trend that became evident in Waymo’s Q3 2025 occupancy stats. As it turned out, 90% of the trips taken by the driverless taxis carried two or fewer passengers.
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota designer observes a trend
Karim Dia Toubajie, Lead Product Designer (Sustainable Mobility) at Toyota Connected Europe, analyzed Waymo’s latest California Public Utilities Commission filings and posted the results on LinkedIn this week.
“90% of robotaxi trips have 2 or less passengers, so why are we using 5-seater vehicles?” Toubajie asked. He continued: “90% of trips have 2 or less people, 75% of trips have 1 or less people.” He accompanied his comments with a graphic showing Waymo’s occupancy rates, which showed 71% of trips having one passenger, 15% of trips having two passengers, 6% of trips having three passengers, 5% of trips having zero passengers, and only 3% of trips having four passengers.
The data excludes operational trips like depot runs or charging, though Toubajie pointed out that most of the time, Waymo’s massive self-driving taxis are really just transporting 1 or 2 people, at times even no passengers at all. “This means that most of the time, the vehicle being used significantly outweighs the needs of the trip,” the Toyota designer wrote in his post.
-->Cybercab suddenly looks perfectly sized
Toubajie gave a nod to Tesla’s approach. “The Tesla Cybercab announced in 2024, is a 2-seater robotaxi with a 50kWh battery but I still believe this is on the larger side of what’s required for most trips,” he wrote.
With Waymo’s own numbers now proving 90% of demand fits two seats or fewer, the wheel-less, lidar-free Cybercab now looks like the smartest play in the room. The Cybercab is designed to be easy to produce, with CEO Elon Musk commenting that its product line would resemble a consumer electronics factory more than an automotive plant. This means that the Cybercab could saturate the roads quickly once it is deployed.
While the Cybercab will likely take the lion’s share of Tesla’s ride-hailing passengers, the Model 3 sedan and Model Y crossover would be perfect for the remaining 9% of riders who require larger vehicles. This should be easy to implement for Tesla, as the Model Y and Model 3 are both mass-market vehicles.
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
