BMW will begin prototype production of solid-state battery cells following an expansion of its deal with U.S. company Solid Power.

The expanded deal has granted BMW an R&D license so it can begin production at its Cell Manufacturing Competence Center in Parsdorf near Munich.

Speaking in an interview with Auto News Europe, BMW’s head of battery R&D, Peter Lamp, said the German car manufacturer will begin producing cells in the first half of this year. It ultimately aims to develop battery cells large enough to test in a vehicle before 2025.

Read: BMW Strengthens Partnership With Solid State Battery Developer

 BMW To Begin Producing Solid-State Battery Cells This Year

“We have good teams on the Solid Power side, on the BMW side,” Lamp said. “If we move forward separately, it’s not the same speed as if we join forces.”

Details of BMW’s expanded partnership with Solid Power were first announced in December 2022. The deal will see BMW pay Solid Power $20 million through June 2024 for its proprietary technology, including the company’s solid-state electrode design and manufacturing expertise. Solid Power will retain its intellectual property over the electrolyte material that it has developed.

“We look forward to working even more closely with Solid Power and adding the capability to produce solid-state cells based on Solid Power’s designs at our own pilot facility,” BMW management board member Frank Weber said at the time. “We expect this agreement to accelerate the installation of our solid-state prototype line and our companies’ mutual goal of commercializing this promising cell technology.”

BMW first invested in Solid Power back in 2017 alongside Ford. Solid Power itself plans to manufacture up to 15,000 large-format sulfide-based battery cells per year and will work with partners such as SK Innovation to produce batteries at a scale large enough to supply automakers.

 BMW To Begin Producing Solid-State Battery Cells This Year