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

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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 still has two major milestones on track before end of Q2

Tesla still is on track to complete two monumental achievements as Q2 nears its end.

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(Credit: Tesla)

Tesla still has two major milestones it is on track to complete before the end of the second quarter, according to statements made by the automaker earlier this year.

With the launch of the Robotaxi platform in Austin on Sunday, Tesla has already completed perhaps its biggest milestone of 2025.

However, these are not the only things the company hopes to accomplish before we head into the latter half of the year, as there are two major things the company said it is aiming to complete before the third quarter starts next week.

Affordable Models

Tesla said earlier this year, on two separate occasions, that it is still on track to develop, build, and unveil the first affordable models that will be built on both the next-gen platform and also have aspects of the current vehicle platform.

Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas

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In the Q4 2024 Earnings Call in January, the company said:

“Preparations are underway across our existing factories for the launch of new products in 2025, including more affordable models.”

The company continued:

“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up.”

Although there are only a few days left, Tesla has yet to confirm that these affordable models are delayed, so we can expect that they’ll be arriving before the quarter ends.

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The company might have been hinting toward one recently at the Fremont Factory, but it is more likely that the vehicle seen was the new Model Y Performance trim:

Tesla’s apparent affordable model zips around Fremont test track

Tesla delivers itself to customers

Back in late May, CEO Elon Musk said that the first Tesla to self-deliver would happen in June:

Tesla just launched its Robotaxi platform on Sunday, so this would be a tremendous step if it can, in fact, make this happen.

The customer would likely be extremely local to Gigafactory Texas. In the future, the company would load the vehicles onto haulers and then drive to customer homes from delivery centers, showrooms, and repair centers.

Teslas will self-deliver to customers, Elon Musk says: here’s when

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Tesla has a few days left to complete both of these tasks, and then it will report delivery figures for the second quarter next week.

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Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Tesla’s Head of North American sales and European ops, Omead Afshar, has reportedly left the company. He was widely-known as Elon Musk’s right-hand man.

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Credit: Elon Musk | X

Tesla’s Omead Afshar, who is widely known as CEO Elon Musk’s right-hand man, has reportedly left the company.

Several outlets are reporting that Afshar either left voluntarily or was potentially terminated on Thursday. His LinkedIn profile has not been updated to reflect this, and still states he presently works at Tesla in the “Office of the CEO.”

Afshar was promoted to Head of North American sales and European operations late last year. We reported on his promotion in October, as he was previously a Project Manager in the Office of the CEO before Musk and co. stepped up his responsibilities.

According to the initial report on Afshar’s departure from Bloomberg, the news has been circulating throughout the company in recent days. His name no longer appears in the company’s internal directory.

It is interesting to think about what could have caused this. Tesla has felt some pressure in Europe with struggling sales figures in some markets. It is the second-best-selling EV maker in the region, with Volkswagen performing slightly better for the year, according to EU-EVs.

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Tesla’s Model Y is the best-selling EV in the region.

While the company has not directly confirmed the news, it appears to be true based on the reports.

Tesla is usually relatively quick to dispel any headlines that go out from mainstream media that are not factual. This has yet to be responded to by any executive, including Musk.

Afshar has been with Tesla for seven years and ten months, first joining in September 2017 as a Project Manager in the Office of the CEO.

He then became a Project Director, before his job title was updated to a Cowboy hat emoji in July 2020, around the time Tesla started moving some things to Texas.

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Forbes is reporting that Afshar was terminated and did not leave voluntarily. This has yet to be confirmed.

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xAI Colossus pollution concerns in Memphis continue

NAACP & SELC push back against xAI Colossus supercomputer. City tests say air is safe — but activists aren’t convinced.

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(Credit: xAI)

Politicians in Memphis continue to debate about the pollution concerns arising from the xAI Colossus supercomputer.

The NAACP and the Southern Environmental Law Center (SELC) have already expressed interest in filing a lawsuit against xAI over concerns related to air pollution stemming from its gas-powered turbines. Environmental groups have now raised concerns about water pollutants.

On Tuesday, Memphis released third-party air quality test results from June 13 and 16. The tests were conducted in downtown Memphis, Whitehaven, and Boxtown, two miles from xAI’s site. The city claimed levels of 10 pollutants tested were safe.

However, SELC–which is representing the NAACP in a potential lawsuit against xAI–criticized the omission of a key pollutant called ozone from the air quality tests. SELC also noted that monitors were placed against buildings, contrary to EPA guidance, stating air sensors should be “at least six feet above ground level, rooftop, or other objects and away from obstructions, vegetation, or emissions sources that would interfere with the measurement.”

Local opposition intensified, with State Representative Justin J. Pearson asserting: “I stand firm that nothing matters if you cannot breathe clean air, drink clean water, and plant in clean soil.”

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On Wednesday, concerns shifted to the Memphis aquifer, as the Tennessee Department of Environment and Conservation held a virtual meeting on xAI’s wastewater facility.

Activist Pamela Moses criticized xAI. “They are not coming here to uplift or invest in our community. They are here to exploit it. This a distressed and a historically neglected area, and instead of bringing opportunity, Colossal is bringing pollution…secrecy and broken promises,” she said.

xAI’s $80 million Grey Water facility aims to mitigate water concerns. The Colossus Water Recycle Facility, a collaboration between the Tennessee Valley Authority and Nucor Steel, aims to alleviate the strain on the aquifer.

“This project is a game changer in terms of it saving about 4.7 billion gallons of water projected, and about 4.7 billion gallons will remain in the aquifer every year,” said Bobby White of the Greater Memphis Chamber.

As xAI’s Memphis supercomputer continues to be the center of debates, the tension between economic benefits and environmental justice remains unresolved. With ongoing scrutiny and potential legal action, xAI’s efforts to address pollution and water concerns will shape its role in Memphis’ future.

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