(Yicai Global) Sept. 13 -- German auto giant BMW Group said it has placed EUR10 billion (USD10.1 billion) of orders with Chinese battery giants Contemporary Amperex Technology and Eve Energy for cylindrical batteries that will go into its upcoming new class of electric vehicles.

BMW will build four gigafactories with its Chinese partners, two each in China and Europe, the Munich-based carmaker said on its official WeChat account on Sept. 9. Each gigafactory will have annual capacity of 20 gigawatt-hours.

CATL will supply cylindrical batteries with a standard diameter of 46 millimeters for BMW’s Neue Klasse pure electric models, the Ningde-based company said the same day. Eve Energy said it received a fixed-point supply letter from BMW to provide large cylindrical lithium-ion batteries for the same models.

BMW Chief Executive Oliver Zipse announced last month that the Neue Klasse will debut as a compact sedan and sport utility vehicle in 2025.

Compared with current battery products, “our sixth-generation lithium-ion batteries have increased the energy density by more than 20 percent, endurance by 30 percent, and charging speed by 30 percent,” said Frank Weber, director of research and development at BMW.

The carmaker will find other partners to build two more gigafactories in the North American Free Trade Area with an annual output of 20 GWh, it said.

Shares of CATL [SHE: 300750] failed 1 percent to close at CNY456.91 (USD65.93) today. Eve Energy [SHE: 300014] rose 2.6 percent to CNY96.98 (USD13.99).

Editor: Futura Costaglione