Thursday, July 25, 2024

Battery factory in crisis: BMW advances with DKK 14 billion

BMW has canceled an order worth 14 billion Danish kroner with Swedish Northvolt. The Germans are tired of the waiting time, writes German media.

BMW is tired of waiting for batteries for the electric models i4 and iX, which Swedish Northvolt was supposed to have delivered until yesterday, Thursday 20 June.

But now the Germans have lost patience and torn a contract worth 14 billion Danish kroner in the middle.

This is written by the German media Manager Magazin .

BMW's decision may well have had immediate consequences for Northvolt. On the same day, the company announced that there will be no new battery factory in the town of Borlänge. Otherwise, 1,000 people would have been employed here.

READ ALSO: The rare Lamborghini stood still on the living room floor for 35 years

BMW has allegedly turned to South Korean Samsung, and Northvolt already had to announce the decision to its shareholders and investors in May.

– The quality is not yet as expected, and the BMW models will anyway be replaced by the next generation of electric cars in the medium term, says a high-ranking BMW employee that Manager Magazin spoke to.

The announcements and the canceled contract come after the news that the factory Northvolt 1 in the city of Skellefteå has massive production problems.

However, the fact that BMW is now withdrawing a contract does not mean that the Germans are leaving Northvolt in the lurch. The car brand remains one of the battery company's partners. Just as a contribution of 700,000 euros has come from the German taxpayers.

Read more exciting news from and about the world of cars right here!

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