BMW Cancels RM9.94 Billion EV Battery Supply Contract With Northvolt
BMW has cancelled a €2 billion (approx. RM 9.94 billion) order for battery cells for its electric vehicles (EVs) from Northvolt.
This decision follows joint discussions between the two firms, where they agreed to shift Northvolt's focus towards developing next-generation battery cells.
"Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells," BMW stated on June 20.
The automaker emphasised its continued interest in supporting the establishment of a high-performance, circular, and sustainable battery cell manufacturer in Europe.
German media, including Manager Magazine, reported that Northvolt failed to meet the delivery schedule for a long-term supply contract signed in July 2020, which was intended to power BMW’s fifth generation of EV batteries, including the iX and i4 models.
Northvolt is reportedly two years behind schedule and has produced a high number of defective cells. In light of said delay, BMW has turned to the Korean supplier Samsung SDI to fill the gap. Despite the setbacks, BMW remains supportive of Northvolt.
The company stated it would consider using Northvolt’s next-generation battery cells in its upcoming Neue Klasse electric cars if the issues are resolved. Northvolt also announced on June 20 that it is reviewing plans to build a new plant in Borlange, central Sweden.
Batteries for BMW's Neue Klasse EVs are expected to be produced at a Northvolt factory in Heide, northern Germany.
This shift highlights BMW's strategic commitment to advancing its EV capabilities while maintaining strong partnerships within the battery supply chain to ensure the timely and efficient production of high-quality electric vehicles. KR
Source: Automotive News Europe
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Thoriq Azmi
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