BMW withdraws multi-billion-euro agreement for battery cells with Northvolt.
Auto giant BMW called off a staggering $1 billion deal for electric car battery cells with Swedish supplier Northvolt. In a statement, BMW stated, "Northvolt and the BMW Group have opted to focus their efforts on developing future-generation battery cells," confirming a report in "Manager Magazin".
Four years ago, BMW granted a contract worth an impressive €2 billion. The battery cells were intended to be manufactured at Northvolt's "Ett" Gigafactory in Skelleftea, Sweden, which was still under construction at the time.
According to the report, Northvolt encountering difficulties in fulfilling the contract was the reason behind the cancelation. Northvolt was purportedly two years delayed and producing an excessive amount of waste. To bridge the gap, BMW is considering enlisting the aid of South Korean supplier Samsung SDI. BMW chose not to disclose the reasons behind the cancelation, and initially, Northvolt was not available for comment.
The report also claimed that BMW will outfit its upcoming electric vehicles ("New Class") with Northvolt batteries. "The BMW Group remains eager for a robust European supplier of circular and sustainable battery cells to thrive," the company declared. The partnership between Northvolt and BMW can be traced back to 2018, when the automaker also invested in the budding company.
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- Despite canceling a $1 billion order worth of battery cells with Northvolt, BMW still values their partnership and remains hopeful for a reliable European supplier, as indicated in their statement.
- BMW initially placed a contract worth €2 billion for battery cells with Northvolt, which were intended to be manufactured at the "Ett" Gigafactory in Skelleftea, Sweden, three years ago.
- Northvolt, the battery cell supplier for BMW, is reportedly facing difficulties and is two years delayed in fulfilling the contract, leading to an excess of waste.
