BMW Halts Billions-Worth Battery Purchase Order

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.

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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.

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