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Battery Range May Factor BMW cancelled deal with Northvolt

BMW and Northvolt deal that battery cells will be produced starting in 2024 at the Northvolt Ett gigafactory in Skellefteå, northern Sweden.
Dew Briefs:
  • 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.
BMW ix electric
Source: BMW

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.

Source: Northvolt Press Release 13 July, 2020
Deal main point:
  • 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.
Diver Insights:
  • 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.

Binder is an experienced writer around the EV industry. Aiming to bridge the EV knowledge gap.