Battery Range May Factor BMW cancelled deal with Northvolt

• BMW may halt the deal but canceled it
• Volvo and Volkswagen Group still with deal
• facing delays deliveries and quality concerns
• Northvolt only has one factory in Sweden, other plants are in planning stage
• Samsung SDI may replace Northvolt as the battery supplier for BMW’s i4 and iX electric cars.

A deal has canceled with Northvolt which provide EV battery cell to a German car manufacturer BMW, Sifted reported on June 20, 2024 by Freya Pratty and Mimi Billing.

In a joint statement by BMW and Northvolt decided that they work together to develop the next Gen Battery Cells but now reports come from the German newspaper as stated by Sifted that production delays are to blame for the cancellation of the deal, which was agreed in 2020.

The company initially ordered fifth-generation battery cells from Northvolt, which are made using 100% wind and hydroelectric power. BMW, Germany has also asked Northvolt to build a new gigafactory in the north to attract green investments to Europe, just weeks after their previous deal fell through.

BMW Group signs long-term supply agreement for battery cells with Northvolt

• BMW Group has signed a long-term supply contract worth 2 billion euros with Northvolt to use only green power for producing fifth-generation battery cells. Battery cells will be produced starting in 2024 at the Northvolt Ett gigafactory in Skellefteå, northern Sweden.
• Northvolt’s commitment to sustainable technologies in cell production and recycling influenced BMW’s decision.
• Oliver Zipse, Chairman of BMW AG, emphasized the importance of improving the environmental balance of their products, especially the energy-intensive production of high-voltage batteries.
• Andreas Wendt, BMW AG’s Board of Management member responsible for Purchasing and Supplier Network, highlighted the contract as a step towards fulfilling the increasing need for battery cells.

• Upcoming electric car models from other brands like Xiaomi, BYD, Tesla, NIO etc. boasting their EVs ranges up to 1000 km. In contrast, the battery provided by Northvolt for the BMW i4 offers a range upto 483 to 590 km only.
• This significant difference in range performance could be a factor in BMW’s decision to compare its batteries with higher-range models from other brands.
• May Northvolt’s inability to reach upto 1000 km range may lead BMW to reconsider and possibly exit their deal made in 2020.