BMW Group (BMW.DE) announced today that it will be collaborating with Jaguar Land Rover to create a next generation electric drive unit in a move that supports the advancement of electrification technologies that are necessary to tackle the challenges of autonomous driving, connectivity, electrification and services (ACES).

The BMW Group’s most advanced piece of electrified technology as of right now features an electric motor, transmission and power electronics in one casing. This electric motor does not require rare earths, which enables the BMW Group to reduce its dependence on their availability as it continues to methodically expand its range of electrified models.

Starting next year, the BMW Group will introduce the electric drive unit, the fifth generation (“Gen 5”) of its eDrive technology, with the BMW iX3 Sports Activity Vehicle. The Gen 5 electric drive unit will be the propulsion system upon which subsequent evolutions launched together with Jaguar Land Rover will be based.

This partnership allows both groups to take advantage of cost efficiencies that will result from shared development plans and planned production as well as economies of scale from joint purchasing.

“The automotive industry is undergoing a steep transformation. We see collaboration as a key for success, also in the field of electrification. With Jaguar Land Rover, we found a partner whose requirements for the future generation of electric drive units significantly match ours. Together, we have the opportunity to cater more effectively for customer needs by shortening development time and bringing vehicles and state-of-the-art technologies more rapidly to market,” said Klaus Fröhlich, Member of the Board of Management of BMW AG, Development.