BMW cancels a huge €2.15 billion order from Northvolt. The Swedish company specialized in battery manufacturing is currently unable to meet the expectations of the automaker.
German colleagues at Handelsblatt recently confirmed that BMW has canceled a battery cell order from Northvolt. This was no ordinary order, as it amounted to around €2.15 billion. The Swedish company is apparently not able to meet the demand of the automaker. According to the media, “Northvolt is two years behind its initial plans.” The company is unable to accelerate mass production and is also generating too much waste.
Is Northvolt struggling?
Despite this decision, a BMW spokesperson stated that “BMW Group continues to be highly interested in collaborating with a high-performing manufacturer of sustainable battery cells in Europe. We have jointly decided to focus Northvolt’s activities on the development of next-generation battery cells.” In the meantime, South Korean company Samsung SDI will take over to equip BMW electric vehicles with its batteries.
The German automaker was counting on Northvolt to produce its fifth generation of batteries. The modules were supposed to be manufactured in Sweden starting from this year, using 100% renewable energy, and to be installed in the iX and i4 models. Despite this setback, BMW assures that Northvolt will still be the supplier of batteries for the Neue Klasse range. These batteries are expected to be produced at a Northvolt factory in Heide, in northern Germany. Construction of this giant site began just a few months ago.