- BMW cancels contract with Swedish EV battery supplier worth $2 billion
- Northvolt, based in Sweden, still has agreements with Volvo and the Volkswagen Group
- BMW has switched to using cylindrical batteries with higher energy density
BMW has canceled a contract worth about $2 billion to supply electric vehicle batteries from Swedish company Northvolt, Reuters reported on Thursday.
German media, including Manager magazine, initially reported that Northvolt was unable to deliver on time under a supply contract signed in 2020 and worth $2.3 billion at the time. That contract stipulates that Northvolt will start working Electric vehicle battery for BMW in 2024.
BMW cylindrical battery
“Northvolt and the BMW Group have jointly decided to focus Northvolt’s activities on the development of next-generation batteries,” BMW car said in a statement to Reuters. “The BMW Group continues to be keenly interested in establishing a high-performance sustainable and circular battery cell manufacturer in Europe.”
BMW has signed contracts with Samsung SDI and CATL for batteries. Both Asian companies have factories in Europe, but the deal with Northvolt will give BMW a supplier also headquartered in Europe – a box German carmakers are under pressure To test.
BMW Vision Neue Klasse X concept
BMW said in 2020 that batteries would be manufactured by Northvolt at a factory under construction in Skelleftea, Sweden, using 100% renewable energy. At the same time, Northvolt announced the construction of a factory in Germany in cooperation with the Volkswagen Group. It also announced a battery factory in joint venture with Volvo in 2022 is expected to produce batteries for the electric Volvo XC60 SUV and a Canadian tree in 2023.
BMW is moving on cylindrical battery with its next generation Neue Klasse (German for “new class”) Electric vehicles claim to increase energy density and charging efficiency. The vehicles themselves will be assembled at two European locations starting in 2025, with a production rate for the North American market of factory in Mexico next in 2027.
