BMW Announces €2 Billion Battery Supply Deal With Northvolt

Future plug-ins from BMW Group will be equipped also with Northvolt battery cells.

BMW Group today officially announced a long-term lithium-ion battery cell supply contract with Northvolt, worth some €2 billion (almost $2.3 billion).

Northvolt is expected to start cell deliveries in 2024, from its Northvolt Ett gigafactory (currently under construction) in Skellefteå, northern Sweden. The plant will be 100% powered by renewable electricity.

Northvolt is the third cell supplier picked-up by BMW, after Samsung SDI (€2.9 billion order) and CATL (€7.3 billion order). More details about the previous two contracts can be found here.

“The BMW Group recognised Northvolt’s potential and expertise early: In mid-2018, the BMW Group entered a cooperation to develop battery cells with the company formed in 2016. This was underpinned by the BMW Group’s financial participation in the firm. Both sides benefit from the partnership: The BMW Group contributes the battery expertise it has acquired over more than 15 years, while Northvolt has enabled itself for mass production with its gigafactory in northern Sweden.”

With three battery suppliers, BMW seems to be future-proof in terms of stable battery supplies and secured on price point negotiations.

It’s a major success for the Northvolt, which previously secured Volkswagen as an investor, partner and customer for its German gigafactory.

The Northvolt Ett plant in Sweden to be ready for 32 GWh annually, while the Northvolt Zwei in Germany to be for 16 GWh (with an option for 24 GWh).

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