Skip to content
Sign In Subscribe
Economy — News — BMW — Electric cars — Samsung — Electromobility — German carmakers — Battery cells

BMW Halts Billions-Worth Battery Purchase Order

Northvolt Facing Potential Challenges

,   and  Viktoria Klein
2 min read
Northvolt is also building a large battery factory in Schleswig-Holstein.
Northvolt is also building a large battery factory in Schleswig-Holstein.

BMW Halts Billions-Worth Battery Purchase Order

The alliance between Northvolt and BMW originates from four years ago. Back then, BMW placed an order with the Swedish company valued at more than two billion Euros for batteries. Currently, a Korean supplier is set to take over the order.

BMW has scrapped a one-billion-euro deal for batteries with Swedish battery maker Northvolt. BMW stated, "Northvolt and BMW Group have chosen to concentrate on creating next-gen battery cells." BMW acknowledged a report by "Manager Magazin," but declined to elaborate on the reasons for the cancellation, while Northvolt remained inaccessible for a comment.

BMW had bestowed the over two billion Euro contract upon Northvolt four years ago. The batteries were intended to be produced at Northvolt's "Ett" Gigafactory in Skelleftea, Sweden, which was then under construction.

As per the report, Northvolt faced challenges in meeting the contract terms. The battery manufacturer is said to be delayed by two years and producing excessive waste. BMW is rumored to be seeking assistance from the Korean supplier Samsung SDI to fill the void created by the cancellation. BMW aims to outfit its upcoming electric car series ("New Class") with Northvolt batteries.

BMW reaffirmed its interest in establishing a strong, circular, and sustainable European battery cell supplier. The connection between Northvolt and BMW goes back to 2018, when BMW invested in the up-and-coming company.

Read also:

  1. Despite the setback with Northvolt, German carmakers like BMW continue to explore alternatives for electric car battery supply, potentially collaborating with companies like Samsung SDI.
  2. BMW's decision to cancel the two-billion-euro battery cell deal with Northvolt highlights the importance of electromobility for electric car manufacturers, emphasizing the need for reliable and efficient battery suppliers.
  3. In light of the challenges faced by Northvolt, the race for battery cell supremacy in Europe continues to heat up, with companies like Samsung SDI positioning themselves as potential partners for major German carmakers like BMW.

Comments

Related

Latest

At the commencement of September, Jannik Sinner clinched the victorious title at the US Open.
Sport

The top-ranked tennis player in the world's anti-doping system confronts an extended suspension

The top-ranked tennis player in the world's anti-doping system confronts an extended suspension In March, tests for performance-enhancing substances on Jannik Sinner showed positive results, but he managed to avoid suspension. However, opposing this decision, the World Anti-Doping Agency (Wada) has moved to challenge it and is requesting

,   and  Hanna Hofmann
Members Public
Thorough King has emerged as the unanimously preferred choice for CDU, BSW, the Left, and SPD.
Politics

The legislative body in Thuringia chooses a CDU representative as its presiding officer.

The legislative body in Thuringia chooses a CDU representative as its presiding officer. After the chaotic first meeting of the freshly elected Thuringian state parliament, the Constitutional Court outlines strict guidelines for the temporary leader of the AfD, Treutler. Proceeding with the parliamentary session, the 73-year-old adheres to these stipulations.

,   and  Grigoriy Williams
Members Public