Rimac will provide batteries for the next generation of BMW's electric cars, it has been confirmed. 

The Croatian EV specialist's engineering division, Rimac Technology, has inked a supply deal with BMW that heralds "the largest and most ambitious project the company has undertaken to date". 

No financial terms of the deal have been disclosed and neither firm has given any indication of the volumes in which Rimac will supply batteries. 

However, Rimac said the deal requires it to equip its battery factory with new "sophisticated automated production lines".

"A significant portion" of the Rimac Campus near Zagreb will be dedicated to developing and supplying BMW's new battery packs, "underlining the company's commitment" to its partnership with BMW. 

The two companies have promised to give further details of the tie-up "at a later stage".

Rimac founder and CEO Mate Rimac said: "My business journey began with a 1984 BMW 3 Series that I converted into an electric car in my garage at the age of 20, so it’s a perfect piece of symmetry to partner with the BMW Group today. 

"This marks a pivotal moment in the growth of Rimac Technology, from humble beginnings to a major long-term partnership with one of the greatest automotive brands in the world.

"It’s a clear sign of the transition of Rimac Technology from niche high-performance supplier to high-volume production capability. 

"With the relentless growth of our business, including the opening of Rimac Campus, we’re now ready to deliver large-scale projects for the leading brands in the automotive industry.” 

It remains unclear what implications the new deal has for BMW's existing battery supply framework. 

BMW procures EV batteries from five global sites currently and is building new sites for its next-generation batteries in China, Hungary, Mexico and the US. Another new factory is being built in Germany to assemble batteries for EVs built by BMW in Munich, Dingolfing and Regensburg. 

BMW has already confirmed preliminary technical details of its next-generation batteries, which are due to be fitted to the Neue Klasse range of EVs from 2025 onwards and have been described as unique to BMW. 

Using cylindrical cells in place of today's prismatic arrangement, the new packs are said to offer 30% more range than today's EVs while boosting charging speed and reducing weight. 

It's unclear whether Rimac has been brought on to refine the chemistry and production process for these new packs or whether BMW plans to use multiple types of battery.