June 22, 2024 – According to a report from Reuters, Swedish battery manufacturer Northvolt, founded by a former Tesla executive, has failed to fulfill a long-term supply agreement, leading BMW to recently cancel a battery contract signed with Northvolt in 2020 worth over 2 billion euros.
Last year, Northvolt announced a significant breakthrough in energy density for its sodium-ion battery technology, positioning it as a viable and cost-effective alternative to Lithium Ferro Phosphate (LFP) batteries, which are currently used in most mid-range and economical electric vehicles.
In a statement on June 20, BMW indicated, “Northvolt and the BMW Group have mutually decided to focus Northvolt’s business on developing next-generation batteries. The BMW Group remains keenly interested in establishing a high-performance, circular, and sustainable battery manufacturer in Europe.”
Following the termination of the agreement, BMW still intends to establish a “high-performance, circular, and sustainable battery manufacturer” in Europe. However, it remains unclear whether BMW plans to continue internal battery production or shift to another external supplier.
According to CarBuzz, BMW had previously planned to have mass-producible solid-state electric vehicle batteries ready before launching its first Neue Klasse car in 2025. Nevertheless, these plans appear to have been postponed until at least 2030.
