Northvolt in trouble?
BMW cancels billion-dollar battery order
20.06.2024, 19:38
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The partnership between Northvolt and BMW goes back a long way. Four years ago, the Munich-based carmaker ordered batteries worth more than two billion euros from the Swedish company. But now a Korean supplier has to step in to fulfill the order.
BMW has cancelled a multi-billion dollar order from Swedish battery manufacturer Northvolt. “Northvolt and the BMW Group have jointly decided to concentrate Northvolt’s activities on the goal of developing next-generation battery cells,” the Munich-based carmaker announced. BMW is thus confirming a report by “Manager Magazin”. BMW does not want to comment on the reasons for the cancellation, and Northvolt could not be reached for comment.
BMW awarded Northvolt the contract worth more than two billion euros four years ago. The battery cells were to be produced from 2024 in the “Ett” gigafactory in Skelleftea, Sweden, which was still under construction at the time.
According to the report, however, Northvolt is having difficulty fulfilling the contract. The battery manufacturer is two years behind schedule in its ramp-up and is producing too much waste. BMW wants to close the resulting gap with the help of the Korean supplier Samsung SDI, it is said. BMW then wants to equip the next generation of electric cars (“New Class”) with Northvolt batteries.
“The BMW Group remains keen to establish a high-performance manufacturer of circular and sustainable battery cells in Europe,” the company explained. The partnership between Northvolt and BMW dates back to 2018, when the carmaker acquired a stake in the young company.