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Automotive Industry
BMW had ordered the Northvolt cells for its fifth generation of batteries. They were to be supplied from Northvolt’s plant in Skelleftea, Sweden.
BMW has cancelled a €2 bn ($2.15 bn) order for battery cells for its electric vehicles with Northvolt.
"Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells," BMW said in a statement on 20 June 2024.
"The BMW Group continues to have a strong interest in establishing a high-performance manufacturer of circular and sustainable battery cells in Europe," it said.
German media, including Manager Magazin, reported that Northvolt could not deliver on time on a long-term supply contract for battery cells. BMW signed a deal in July 2020 for Northvolt to supply battery cells to power the automaker's electric cars.
Manager Magazin said Northvolt is two years behind schedule and is producing too many rejects. BMW ordered the Northvolt cells for its fifth generation of batteries in EVs including the iX and i4 electric cars.
The Korean supplier Samsung SDI stepped in to fill the gap, Manager Magazin said.
BMW still supports Northvolt and the automaker will use next-generation battery cells from Northvolt in its Neue Klasse electric cars if the glitches are resolved, the magazine said.
Northvolt did not immediately respond to Reuters' request to comment.
Northvolt said on 20 June 2024 that it is reviewing plans to build a new plant in Borlange in central Sweden. The batteries for BMW's Neue Klasse EVs are due to be produced in a Northvolt factory in Heide, northern Germany.