Rimac spins out battery business after Bugatti deal

Rimac spins out battery business after Bugatti deal

Business news |
By Nick Flaherty

European supercar developer Rimac is to merge its car business with Bugatti in a joint venture that will be part of the Volkswagen group.

The deal will also see the launch of Rimac Technology outside of VW to supply high performance wireless battery systems based on silicon from Analog Devices.

Rimac Automobili was started ten years ago in Croatia to develop electric supercar designs. The latest, the Nevere, was launched last month.

The joint venture, called Bugatti Rimac, will be 55 percent owned by the newly formed Rimac Group and 45 percent by Porsche and will be run by Mate Rimac as CEO. Existig Rimac shareholders will retain their original shareholding in Rimac Group with the founder at 37 percent, Porsche at 24 percent, Hyundai Motor Group 12 percent and other investors at 27 percent.

The development, production and supply of battery systems, drivetrains and other EV components will be separated into a new company called Rimac Technology, which will be 100 percent owned by the Rimac Group and remain an independent company working with many global car manufacturers. This will also be run by Mate Rimac.

Rimac has also been working on wireless battery management systems to simplify the use of batteries in ‘second use’ applications such as stationary storage when the packs are no longer suitable for the supercars.

Bugatti and Rimac will both continue as separate brands, with Rimac Automobili retaining its current premises on the outskirts of Zagreb, Croatia and Bugatti production continuing in Molsheim, France.

The Bugatti headquarters is set to move to Rimac’s recently announced €200M, 100,000m2 campus that will be the base for all research and development of future Rimac and Bugatti hypercars as well as Rimac Technology when it opens in 2023. This will have a staff of 2500 people.

The Rimac Group will separately continue to innovate, creating both its own hypercars, as well as developing systems and technologies for global OEMs, including future Bugatti and Rimac models from the joint venture.

“This is a truly exciting moment in the short, yet rapidly expanding history of Rimac Automobili. We have gone through so much in such a short space of time, but this new venture takes things to a completely new level. Rimac and Bugatti are a perfect match in terms of what we each bring to the table,” said Mate Rimac, Founder and CEO of Rimac Automobili

“We are combining Bugatti’s strong expertise in the hypercar business with Rimac’s tremendous innovative strength in the highly promising field of electromobility. Bugatti is contributing a tradition-rich brand, iconic products, a loyal customer base and a global dealer network to the joint venture. In addition to technology, Rimac is contributing new development and organisational approaches,” said Oliver Blume, Chairman of the Executive Board at Porsche.

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