BF3 will use Frostbite 2. I don't know technical details about it, but off the wiki page for it....
The next generation of Frostbite will debut with Battlefield 3. It will take full advantage of the DirectX 11 API and 64-bit processors,[2] with no support for DirectX 9 (nor, therefore, Windows XP).[3] It will also feature enhanced in-game destruction with Destruction 3.0, creating more refined physics than its predecessor.
At SIGGRAPH 2010, DICE gave several presentations on advances in their rendering technology:
"Tile-based deferred shading acceleration" via DirectCompute. This is being ported to the PlayStation 3's SPUs.
Morphological Anti-Aliasing (MLAA), again implemented with DirectCompute, for bandwidth conservation. MLAA is currently available only to a few PlayStation 3 games such as God of War III and LittleBigPlanet 2. DICE intends to bring this feature to DirectX 11 GPUs.
Quasi-realtime radiosity.
Improved environment destruction.
Realtime aproximated subsurface scattering.
It definitely looks better and I plan on getting it for PC.
