BMW signs battery supply contract with Northvolt

BMW signs battery supply contract with Northvolt

July 18, 2020 0 By autotimesnews

The Swedish company will supply the Bavarians with cells built with 100% renewable energy. The contract value will be $ 2.3 billion.

BMW has already signed a € 2 billion (about $ 2.3 billion) deal with Northvolt to order battery cells for electric vehicles. At a time when Asian suppliers dominate the battery industry, BMW’s deal with Northvolt signals a change in the supply chain for European automakers with a focus on battery sustainability and lifecycle.

Northvolt will produce batteries for BMW at a new gigafactory under construction in northern Sweden, where it plans to source 100% of its energy from renewable sources, in particular from wind and hydroelectric power plants. The company expects to begin production of cells at the new plant in 2024, as well as recycling of expired batteries. Through its Revolt program, Northvolt plans to recycle 25,000 tonnes of battery cells per year by 2022.

In addition to recycling, Northvolt will look for raw materials such as cobalt and lithium for its battery cells. BMW plans to phase out the use of rare metals in its fifth-generation electric motors starting next year.

In addition to Northvolt, BMW supplies Samsung SDI batteries and Chinese manufacturer CATL, which is building a new plant in Erfurt, Germany. With the help of these companies, BMW plans to produce batteries for its electric vehicles near their production sites in Germany, China and the United States.