BMW has confirmed the next phase of its partnership with Rimac Technology that will see the Croatian firm supply high-voltage battery systems for the upcoming facelifted i7, which is expected to debut later this month.

For CEO Mate Rimac, the deal brings things full circle. His journey into the EV space started back in 2009 with a modified E30 BMW 3-Series. Now, the company he founded is delivering the most critical component for BMW’s flagship electric sedan. Rimac Group also holds a controlling stake in Bugatti Rimac, the hypercar joint venture with Bugatti.

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Rimac shared the news via his personal social media channels, noting that development work on the battery has been underway with BMW for the past five years.

BMW / Rimac

The battery unit was developed in Jankomir, Croatia, and is now built locally at Rimac’s sprawling 90,000 square meter (968,751 square feet) campus in Zagreb. From there, completed battery packs are shipped to BMW’s Dingolfing plant in Germany, where final vehicle assembly takes place.

Production capacity stands at 300,000 modules per year, translating to around 50,000 full battery systems annually. Rimac says the scale of the operation likely makes it the largest industrial project in Croatia’s history, which puts into perspective just how ambitious this setup really is.

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According to the Bugatti Rimac CEO, the dedicated production line for the BMW i7 battery carries a €130 million ($150 million) price tag. That figure actually surpasses the €120 million ($139 million) cost to build the entire campus.

The high-voltage battery pack blends BMW’s Gen6 cell chemistry with its Gen5 module-based architecture. It uses 4695-format cylindrical lithium-ion cells, delivering a 20% boost in energy density compared to the prismatic cells used in current batteries.

BMW says the new setup will bring “significantly increased range” and “much faster” charging than the outgoing i7, effectively injecting some Neue Klasse thinking into the brand’s flagship EV sedan.

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Rimac added: “BMW has always been known for pushing engineering to the highest level, which made this collaboration especially exciting for us. Together, we developed a high-voltage battery system that unlocks the full potential of the new cylindrical cells in record time, delivering significant improvements in energy, range, and charging performance. We are proud to now see this system being produced at scale at our new Rimac Campus.”

The updated BMW i7 is set to make its global debut alongside the combustion 7-Series facelift at the Auto China 2026 in Beijing at the end of April. Teasers, leaks, and recent spy shots all point to a redesigned front end and a refreshed interior.

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Most people outside China have probably never heard of the Maextro S800. Yet this large Chinese luxobarge has quietly begun outselling some very familiar names. In recent months, it has moved more units than the Porsche Panamera, BMW 7-Series, and Mercedes-Maybach S-Class combined in China.

Foreign automakers are all struggling to compete with homegrown competition in the Chinese market, not least of all, Porsche. The German sports car brand is at a problematic stage, experiencing one of the biggest drops in sales, both in China, and globally.

Read: Porsche Is Shutting Down A Third Of Its Dealerships In China

The number of deliveries in China fell by approximately 26 percent last year, Bloomberg reports. And, for all its territories in 2025, Porsche had supplied approximately 279,449 cars to customers all around the world. That’s 10 percent below the year prior.

Chinese Demand Wanes

Maextro S800

For years, China had been Porsche’s single most important growth engine. Wealthy buyers were drawn in by the brand’s reputation for performance and status. That dynamic has shifted with the emergence of a new generation of consumers, who are more aware of the advantages of electric vehicles and the idea of electric propulsion.

Combine that with Chinese automaker’s unique grasp of how to cater to the wants and needs of the home market consumer, as well as the ability to consistently beat Western offerings on price and performance, and it’s little wonder why cars like the S800 are doing so well in a segment that was once rich with Germany’s finest.

Still, the rate at which Chinese automakers have been able to capitalize within the luxury automobile market is nothing short of alarming. Their model lines are competing head-on with long-established luxury brands throughout Europe and, in most instances, provide highly advanced digital and battery technology that buyers are seeking.

However, for consumers, local EV makers are viewed as a representation of innovation, rather than being compromised, especially when it comes to younger buyers.

Strong Local Offerings

Maextro S800

Brands like Huawei’s Maextro, Xiaomi, and BYD have gained market share in the luxury EV range. The S800, for instance, starts at the equivalent price of $103,000, which is around 40 percent cheaper than the Panamera.

Xiaomi’s SU7 EV, meanwhile, is not only quicker than the all-electric Taycan to 100 km/h (2.1 seconds vs 2.7 seconds), it has a higher top speed (350 km/h vs 270 km/h) and offers nearly double the horsepower and torque (1,548 PS / 1,770 Nm vs 884 PS / 890 Nm). And it does all that, while costing a third of the price of the Porsche.

Having expansive product offerings and high levels of domestic loyalty, such firms have started attracting clients who, not too long ago, would have only considered a car with a foreign badge as worthy.

But, in the case of Porsche, this change is a challenging fact. Prestige alone is no longer sufficient to ensure success. So much so that Bloomberg reports that Porsche is not only downsizing its dealer structure, but is also in the process of winding down its EV charging network.

Righting The Ship

Under the leadership of its new CEO, Michael Leiters, Porsche has started to re-evaluate its strategy. The company is leaning on its traditional strengths, focusing on relatively high-margin sports cars and SUVs and pushing a bit heavier on the full complexity electrification. The idea is not to compete on price with the domestic manufacturers of EVs but to shore up what makes the brand unique.

Leiters has told investors the company is looking to see margins improve, though modestly this year. These difficult times have tightened Porsche’s operations’ profit margins, and the company hopes for better cost control and a well-defined product strategy to stabilize performance. The approach is cautious optimism as opposed to quick promises of a turnaround.

China Still Remains Part Of The Plan

Even though Porsche are scaling back their presence in China, they’re not ready to throw in the towel just yet. “The needs of Chinese customers have fundamentally changed,” Porsche China President Alexander Pollich said. “We are a niche brand, a small-scale manufacturer that can hardly change the economic environment, nor reverse the overall market trend. What we can do is to truly examine ourselves and strengthen the core capabilities.”

Porsche will be launching the all-electric Cayenne in the near future and will also introduce more gasoline-powered and plug-in hybrid SUVs, with China-only models high on the agenda. To support this effort, the company is establishing an all-new development hub in Shanghai that will operate independently from Germany.

First on the agenda is designing a new infotainment system that can better match the unique demands of Chinese buyers, likely with native integration for the local apps many owners use daily, rather than relying on the global software stack developed in Germany. In a market that is evolving as quickly as China’s, that kind of local focus may prove just as important as performance or prestige.

BMW is getting ready to freshen up its flagship sedan. After months of camouflaged prototypes roaming public roads, the company has finally released its first official teaser of the facelifted 7-Series, confirming the luxury sedan will make its global debut at Auto China in Beijing next month.

The current 7-Series generation arrived in 2022, which means it is right on schedule for BMW’s mid-cycle LCI update, short for Life Cycle Impulse. The shadowy teaser image focuses on the front end, revealing a new lighting signature with slimmer, more horizontal daytime running lights. They sit on either side of a larger, more squared-off illuminated kidney grille.

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Judging from earlier spy shots, the kidney grille appears to switch from vertical slats to a horizontal layout. The split headlight arrangement remains, although the lower clusters that house the main beams look slightly smaller than before.

The side profile does not appear to be changing much. Expect the familiar long-wheelbase silhouette to carry over largely untouched, while the rear receives the usual facelift treatment with updated LED taillights and minor revisions to the bumper.

Neue Klasse Technology

At BMW’s 2026 Annual Conference, chairman Oliver Zipse confirmed that the facelifted 7-Series will serve as the first current model to inherit what the company calls “technology clusters” from the upcoming Neue Klasse lineup. The next-generation X5 is expected to follow shortly after, with its own debut slated for later this summer.

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For the flagship sedan, that means several of the brand’s next-generation digital systems will make their way into the cabin. Among them is BMW Panoramic Vision, the wide pillar-to-pillar display stretching across the base of the windshield, along with the company’s new iDrive X operating system.

Behind the scenes, BMW also plans to integrate four central computing units, referred to internally as “Superbrains,” which handle major vehicle functions and software processes.

Despite those upgrades, the big sedan will not migrate to the Neue Klasse platform itself. Instead, the facelift keeps the current CLAR architecture underneath. As with the outgoing model, it will remain available with gasoline, plug-in hybrid, and fully electric (i7) powertrain options, possibly with small refinements. It is also safe to assume that the 7-Series will gain a new variant from the BMW Alpina sub-brand.

The teaser for the mid-lifecycle update of the BMW 7-Series arrives just weeks after Mercedes unveiled a heavily refreshed version of its longtime rival, the S-Class. The luxury sedan also faces growing competition in China from newcomers such as the Huawei-backed Maextro S800.

Baldauf