BMW, a German auto manufacturer, has canceled a EUR 2 billion (~USD 2.2 million) for EV battery cells from Northvolt, a European EV battery and energy storage producer.

It was reported that this was due to Northvolt's inability to deliver the batteries on schedule for the long-term contract that was initially signed in 2020.

Analyst QuickTake: BMW intended to use Northvolt's cells for its fifth-generation batteries, which were originally scheduled for production in 2024. Now the order will be fulfilled by Samsung SDI, with BMW and Northvolt continuing their relationship, with the latter planning to supply the next-generation battery cells that BMW needs for its Vision New Class EVs. Northvolt has not received any other cancellations. In addition, the order cancellation follows Northvolt's announcement in March 2024 of the construction of its newest battery gigafactory in Germany, known as Northvolt Drei, which will be operational in 2026. The facility will have an annual production capacity of 60 GWh.