BMW has reportedly cancelled a 2 billion euro (A$3.2 billion) order for battery cells for its electrical autos (EVs) with Swedish battery provider Northvolt, following delays within the latter fulfilling the carmaker’s orders.
Reuters reviews the Swedish firm couldn’t ship on time on a long-term provide contract for battery cells, which was signed in 2020.
The battery cells had been to be produced from the beginning of this yr on the Northvolt Ett gigafactory – positioned in Skellefteå, roughly 9 hours north of Stockholm.
Northvolt is Volvo’s battery provider, and it was final yr reported the corporate had secured greater than A$79.64 billion price of contracts from corporations together with BMW, Volkswagen, and Polestar.
BMW Group and Northvolt have been companions since 2018, when the 2 corporations started a joint operation to develop battery cells. The partnership was additionally underpinned by BMW Group’s “monetary participation” in Northvolt, in keeping with a media launch from 2020.
BMW instructed Reuters “Northvolt and BMW Group have collectively determined to focus Northvolt’s actions on the purpose of growing next-generation battery cells”.
“The BMW Group continues to have a powerful curiosity in establishing a high-performance producer of round and sustainable battery cells in Europe.”
Northvolt didn’t instantly reply to the information company’s request for remark.
Based in 2016, Northvolt claims its major mission is to construct the world’s greenest battery.
In November 2021, it produced its first battery cell with 100 per cent recycled nickel, manganese and cobalt, with plans to have 50 per cent of all its uncooked supplies come from recycled batteries by 2030.
As a part of the producer offers, Volkswagen alone positioned a A$20.27 billion battery cell order with Northvolt in 2021.
In 2022, Northvolt introduced it will construct a battery manufacturing plant in Gothenburg, Sweden, as a part of a three way partnership with Volvo Vehicles. It’s set to begin operations subsequent yr.
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