Bosch has announced a battery supply deal with China’s Contemporary Amperex Technology to work together on developing high-performance battery cells.

The partnership will see CATL design, develop and manufacture electric car battery cells to be used in Bosch’s 48-volt mild-hybrid powertrain system that’s currently being developed. Bosch’s system incorporates an electric motor powered by a 48-volt battery that supplements the internal combustion engine. The battery is charged by recovering energy generated during braking and, according to the company, can cut fuel consumption by as much as 15 per cent.

Also Read: Toyota To Co-Develop EV Batteries With China’s CATL

Bosch believes that by 2025, nearly 20 per cent of new cars sold annually around the world will use 48-volt mild-hybrid technology.

“We are confident that our 48-volt battery will achieve a leading position in the market, and make the 48-volt hybrid affordable for the mass market,” member of the board of management and chairman of the Mobility Solutions business sector of Bosch, Dr. Stefan Hartung, said. “With CATL, we have brought an established cell specialist for lithium-ion batteries on board as a partner. In combination with our systems know-how and expertise in battery management, we will extend our strong position in the 48-volt battery market.”

Bosch started making its first-generation 48-volt system late last year at its plant in Wuxi, China. Its latest 48-volt technology promises to be a leap ahead because the battery is smaller and cooled passively, meaning automakers can integrate the system into their vehicles without the need for additional cooling units.