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BMW Cancels RM9.94 Billion EV Battery Supply Contract With Northvolt

Thoriq Azmi

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BMW has cancelled a €2 billion (approx. RM 9.94 billion) order for battery cells for its electric vehicles (EVs) from Northvolt. 

This decision follows joint discussions between the two firms, where they agreed to shift Northvolt's focus towards developing next-generation battery cells. 

"Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells," BMW stated on June 20. 


northvolt-battery-factory.jpgvolvo-northvolt-battery-factory-render.jpg


The automaker emphasised its continued interest in supporting the establishment of a high-performance, circular, and sustainable battery cell manufacturer in Europe.

German media, including Manager Magazine, reported that Northvolt failed to meet the delivery schedule for a long-term supply contract signed in July 2020, which was intended to power BMW’s fifth generation of EV batteries, including the iX and i4 models. 

Northvolt is reportedly two years behind schedule and has produced a high number of defective cells. In light of said delay, BMW has turned to the Korean supplier Samsung SDI to fill the gap. Despite the setbacks, BMW remains supportive of Northvolt. 


Caricarz-MBA-BMW-iX-xDrive50Sport-Ext-1.jpgweb_CariCarz_Review_BMW-i4-eDrive40_-71.jpgBMW-Vision-Neue-Klasse-X-11-1536x1024.jpg


The company stated it would consider using Northvolt’s next-generation battery cells in its upcoming Neue Klasse electric cars if the issues are resolved. Northvolt also announced on June 20 that it is reviewing plans to build a new plant in Borlange, central Sweden. 

Batteries for BMW's Neue Klasse EVs are expected to be produced at a Northvolt factory in Heide, northern Germany.

This shift highlights BMW's strategic commitment to advancing its EV capabilities while maintaining strong partnerships within the battery supply chain to ensure the timely and efficient production of high-quality electric vehicles. KR

Source: Automotive News Europe



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Written By

Thoriq Azmi

Former DJ turned driver, rider and story-teller. I drive, I ride, and I string words together about it all. [#FuelledByThoriq] IG: https://www.instagram.com/fuelledbythoriq/

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JPJ Running Numbers

KUALA LUMPUR

VPL9857

SELANGOR

BSG6530

JOHOR

JYE3090

PULAU PINANG

PRS8794

PERAK

ANY4970

PAHANG

CFC9214

KEDAH

KGB5769

NEGERI SEMBILAN

NEG5951

KOTA KINABALU

SJL9999*

KUCHING

QAB7853L

Last updated 31 Jul, 2025

Fuel Price

Petrol

RON 95

RM 2.05

RON 97

RM 3.17

-0.04

RON 100

RM 5.00

VPR

RM 6.23

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EURO 5 B10

RM 2.91

EURO 5 B7

RM 3.11

Last updated 31 Jul, 2025

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