Germany’s Federal Minister for Economic Affairs and Energy is to provide BMW with 68 million euros in funding for the Bavarian carmaker’s planned battery projects.

BMW says it is “supporting the ramp-up of a European cell and battery value chain” with the development of “highly innovative and sustainable battery cells” for its forthcoming “Neue Klasse” of e-vehicles, which will be launched by the middle of the decade.

“With the Neue Klasse, we will make a big leap in technology in electric drives,” said Zipse. “We want to significantly increase the energy density of the cells and reduce the costs of material use and production at the same time. We will also significantly reduce the use of primary material to ensure a truly ‘green’ battery.”

Energy and Economic Affairs Minister Peter Altmaier added, “With the joint European projects, it has been possible to successfully build up the battery value chain in Germany and Europe and to secure sustainable jobs”.

The project is designated under the European Commission’s Important Projects of Common European Interest (IPCEI) funding process, which requires additional support from the Bavarian state government.

Altmaier recently assured Tesla that the German Government would make financial support available for its planned battery production factory near Berlin, which has also secured IPCEI funding.