- The brand was supposed to start getting batteries from Northvolt this year.
- Northvolt will still supply BMW with the battery cells for its Neue Klasse-based EVs.
- The Swedish battery maker was founded in 2016 by two former Tesla executives.
BMW has cancelled a €2 billion ($2.15 billion) order for EV battery cells from Swedish manufacturer Northvolt, four years after the deal was first announced.
In July 2020, BMW signed a supply deal with Northvolt and expected to receive the first battery cells this year. However, Northvolt has been unable to fulfill its obligations as it struggles to ramp up series production. The Swedish company is reportedly two years behind schedule and producing too much waste.
Read: BMW Bringing Six Neue Klasse EVs To The Market This Decade
The cells supplied by Northvolt were planned to be manufactured using 100% renewable energy from wind and hydropower. Handelsblatt reports that BMW recently canceled the order and will call on Samsung SDI to supply the battery cells it needs for its current EVs. Interestingly, BMW still has a contract with Northvolt to supply its Neue Klasse-based EVs with 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,” a BMW spokesperson said. “The BMW Group continues to have a strong interest in establishing a high-performance manufacturer of circular and sustainable battery cells in Europe.”
Northvolt was founded in 2016 by two former Tesla executives, and in January, it raised $5 billion to expand its Swedish facility and allow it to recycle batteries. In March, the company also broke ground on a new battery gigafactory in Heide, Germany, and is considering a new factory in Borlange, Sweden.
BMW’s range of Neue Klasse EVs will launch with a production version of the iX3 in late 2025. This model will be followed up by an electric sedan similar in size to the current 3-Series. Other Neue Klasse models include a coupe-styled sedan dubbed the iX4 and a station wagon set to launch in 2027. A replacement to the current iX2 will also form part of the Neue Klasse family.
