Bmw cancels over two billion euro EV battery order with Northvolt

BMW has cancelled a EUR 2 billion order for battery cells for its electric vehicles with Northvolt. German media reported that Northvolt failed to deliver the battery cells on time, fulfilling the long-term supply contract signed in July 2020. Manager Magazin said that Northvolt is two years behind schedule and is producing too much waste. BMW has ordered Northvolt cells for its fifth generation of EV batteries for several electric models, including the iX and i4. "Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells," BMW said in a statement. Korean supplier Samsung SDI stepped in to fill the gap, Manager Magazin explained.

BMW still supports Northvolt and will use the Swedish manufacturer's next-generation battery cells in its Neue Klasse electric cars if defects are resolved, the magazine concluded. (430436) Wolfspeed delays plans for German chip factory, 21 - US-based Wolfspeed has put on hold plans for a new factory in Germany to produce silicon carbide semiconductors on 200mm wafers. The project had been announced in 2023 for an investment of around $3bn. According to Reuters, Wolfspeed intends to proceed with the investment, but is still looking for financing. For this reason, a spokesperson said that Wolfspeed is now focused on increasing production at the New York plant.

The company will begin construction of the plant in Germany no earlier than mid-2025, two years later than originally planned. The news highlights the European Union's difficulties in increasing semiconductor production and reducing its dependence on chips made in Asia, with the €43 billion Chips Act - between public and private funds - struggling to get off the ground. "Two years on, few projects have actually been built and even fewer have received European Commission approval for state aid, without which they are not financially viable.