July 25, 2024
Electric & Hybrid Cars

BMW terminates $2 billion agreement with Northvolt for EV battery cells

BERLIN — German luxury car manufacturer BMW announced on Thursday that it had terminated a 2 billion euros ($2.15 billion) contract for battery cells for its electric vehicles with Northvolt.

Reports from German media outlets, such as Manager magazine, indicated that the Swedish company was unable to meet the deadlines outlined in a long-term supply agreement for battery cells that was inked in 2020.

“Northvolt and the BMW Group have mutually agreed to shift Northvolt’s efforts towards the development of next-generation battery cells,” stated BMW. It is likely that BMW will now seek alternative suppliers to fulfill its immediate requirements. The company currently manufactures some EV batteries internally and also maintains relationships with major Asian suppliers like CATL.

“The BMW Group remains committed to establishing a leading manufacturer of high-performance, sustainable battery cells in Europe,” the statement added.

Northvolt has not responded to requests from Reuters for comment at this time.

FAQ

Q: Why did BMW cancel its order with Northvolt?

A: BMW terminated the contract as Northvolt was unable to deliver the battery cells on time as per the agreement.

Conclusion

In conclusion, BMW’s decision to cancel its order with Northvolt highlights the challenges faced by the electric vehicle industry in securing a stable and timely supply of critical components. Moving forward, BMW aims to collaborate with other suppliers to meet its battery cell requirements and remains committed to promoting sustainable practices in battery production.

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