By Mauro Orru
BMW AG said Thursday that it has signed a 2-billion-euro ($2.28 billion) supply contract for battery cells with Swedish company Northvolt in a push to have 25 electrified models on the roads by 2023.
The German car maker said battery cells would be produced from 2024 at a Northvolt's facility under construction in Skelleftea in northern Sweden, with energy from wind and hydroelectric power.
"Northvolt is the third battery cell supplier we have partnered with, alongside our existing partners, CATL and Samsung SDI," said Andreas Wendt, member of BMW's management board.
BMW is pushing for the electrification of its vehicle fleet as sales of electrified vehicles are expected to double between 2019 and 2021, anticipating a steep growth curve until 2025. Global electrified vehicles sales should rise by an average of more than 30% every year, BMW said.
The company said electrified vehicles in Europe should make up a third of its new vehicle fleet in 2025 and half of sales in 2030.
Write to Mauro Orru at email@example.com; @MauroOrru94