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BMW has reportedly canceled a €2 billion (A$3.2 billion) order for battery cells for its electric vehicles (EVs) from Swedish battery supplier Northvolt, following delays by the latter in fulfilling the automaker’s orders .
Reuters reports that the Swedish company failed to deliver on time a long-term battery cell supply contract that was signed in 2020.
The battery cells were supposed to be manufactured from the beginning of this year at the Northvolt Ett gigafactory – located in Schelefteo, roughly nine hours north of Stockholm.
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Northvolt is Volvo’s battery supplier and was last year reported the company has secured contracts worth more than A$79.64 billion from companies including BMW, Volkswagen and Polestar.
The BMW Group and Northvolt have been partners since 2018, when the two companies started a joint operation to develop battery cells. The partnership was also supported by BMW Group’s “financial participation” in Northvolt, according to a 2020 media release.
BMW told Reuters that “Northvolt and the BMW Group have jointly decided to focus Northvolt’s activities on the goal of developing next-generation battery cells.”
“The BMW Group continues to have a strong interest in establishing a high-performance producer of circular and sustainable battery cells in Europe.”
Northvolt did not immediately respond to the news agency’s request for comment.
Founded in 2016, Northvolt claims its primary mission is to build the world’s greenest battery.
In November 2021, it produced its first battery cell with 100 percent recycled nickel, manganese and cobalt, with plans for 50 percent of all its raw materials to come from recycled batteries by 2030.
As part of the deals with the manufacturer, Volkswagen alone placed an order of A$20.27 worth of battery cells with Northvolt in 2021.
In 2022, Northvolt announced it would build a battery manufacturing plant in Gothenburg, Sweden, as part of a joint venture with Volvo Cars. It is scheduled to start operating next year.
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