BMW Group officially started volume production of its sixth-generation high-voltage batteries on Thursday in Shenyang, the provincial capital of Liaoning in northeast China, marking a milestone that underscores a key step in its electrification and localization strategy in the country.

The start of battery production is a critical step in bringing the Neue Klasse (or New Class) models to China, building on BMW's system capabilities in R&D, engineering, purchasing and production in Shenyang, said Birgit Boehm, president and CEO of BMW Brilliance Automotive Ltd.

With a 10-billion-yuan (about 1.49 billion U.S. dollars) investment, the battery project features advanced large cylindrical cell design. To advance the large-scale industrialization of these cells, BMW has worked closely with Chinese battery makers, including CATL and EVE Energy.

Shenyang is the largest production base of the BMW Group worldwide. Since 2010, BMW has invested more than RMB 120 billion there, and the seven-millionth vehicle rolled off the line in May of this year.

Milan Nedeljković, chairman of the board of management of BMW AG, said Shenyang's strong location advantages, solid industrial foundation and sound business environment have encouraged BMW to keep increasing investment and turn the Shenyang base into a benchmark for win-win industrial cooperation between China and foreign partners.

BMW also announced on Thursday that its new China-specific BMW i3 had completed a 1,213-kilometer drive without recharging.

Under the company's plans, nearly 20 new and updated models featuring Neue Klasse technology will arrive in the Chinese market by 2027. By 2030, BMW aims to raise the share of locally produced vehicles sold in China to more than 95 percent. The company is also evaluating the expansion of exports of China-produced models from Shenyang to overseas markets, including Southeast Asia.

Nedeljković said China is the world's most vibrant and competitive core market, and BMW is committed to deepening win-win cooperation and opening a future for electrification with China.