BMW cancels $2 bn EV battery deal with sodium-ion leader for next-gen EV cells over failure to deliver

BMW recently cancelled a 2020 contract with Northvolt after the Swedish battery maker failed to deliver on the long-term supply deal. Northvolt was meant to supply BMW with over $2 billion in cells for its electric cars.

According to a Reuters report, BMW said that it has decided, in conjunction with Northvolt, that Northvolt's efforts would be best concentrated on developing next-gen EV technologies. Last year, Northvolt announced a promising energy density breakthrough in its sodium-ion battery technology that positioned it as a viable, affordable alternative to LFP cells currently in use by the majority of mid-range and affordable EVs.

Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells. –BMW

After the split, BMW says it still wants to establish a "high-performance manufacturer of circular and sustainable battery cells in Europe," but it's unclear whether BMW intends to continue its in-house battery manufacturing or turn to another external supplier.

BMW, however, previously planned to have production-ready solid-state EV batteries ready by the launch of its first Neue Klasse vehicles in 2025, although those plans seem to have been postponed until at least 2030, according to CarBuzz.