Northvolt in trouble?: BMW cancels billion-dollar battery order

Northvolt in trouble?: BMW cancels billion-dollar battery order


Northvolt in trouble?
BMW cancels billion-dollar battery order

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The partnership between Northvolt and BMW goes back a long way. Four years ago, the Munich carmaker ordered batteries worth more than two billion euros from the Swedish company. But now the Korean supplier must step in to fulfill the order.

BMW has canceled a billion-dollar order from Swedish battery maker Northvolt. “Northvolt and the BMW Group have jointly decided to focus on Northvolt’s activities with the aim of developing the next generation of battery cells,” said the Munich-based automaker. BMW thus confirms the report of “Manager Magazin”. BMW does not want to comment on the reasons for the cancellation of the Northvolt could not be reached for comment.

BMW placed the order worth more than two billion euros with Northvolt four years ago. The battery cells were to be produced from 2024 at the “Ett” factory in Skelleftea, Sweden, which was still under construction at the time.

However, according to the report, Northvolt is struggling to fulfill the contract. The battery maker is two years behind schedule on acceleration and produces too much scrap. BMW wants to close that gap with the help of Korean company Samsung SDI, it is said. BMW then wants to equip the next generation of electric vehicles (“New Class”) with Northvolt batteries.

“The BMW Group remains committed to establishing a high-performance manufacturer of circular and sustainable battery cells in Europe,” the company said. The partnership between Northvolt and BMW goes back to 2018. At that time, the automaker took a stake in the fledgling company.