Porsche and Audi face delays in model launches due to Northvolt

As Northvolt is unable to deliver the planned quantities to its customers, the company has fallen into the familiar financial difficulties - up to Chapter 11 insolvency in the USA. It is now becoming apparent that the lack of battery cells from the Swedish company is likely to cause problems for car manufacturers, especially Porsche and Audi.

The German publication Handelsblatt reports, citing industry and corporate circles, that several VW Group brands may have to postpone planned model launches because the necessary battery cells from Northvolt are missing.

Unsurprisingly, this involves Porsche, among others. Although the manufacturer uses battery cells from other manufacturers for its Taycan and Macan electric models (the cells for the Macan, for example, come from the CATL plant in Thuringia), the Zuffenhausen-based company has opted for risky single sourcing for the successor to the 718 – Northvolt had long been regarded in the industry as the only battery supplier for the model. The two-seater sports car does not have much space for large battery packs. “Northvolt cells with high energy density and low volume are essential for Porsche. According to information from Handelsblatt, other cell suppliers were not included in the original planning,” the business newspaper reports. The model is actually due to come onto the market at the end of 2025.

Audi is probably questioning the Northvolt contract

When asked by Handelsblatt, Porsche did not wish to comment on the information, stating that it was ‘unable to comment on the situation in the supplier industry’. Officially, therefore, the Zuffenhausen plant is sticking to the contract with Northvolt.

The situation in Ingolstadt looks somewhat different. Citing company circles, the Handelsblatt writes that Audi is examining “whether the contract with the battery cell manufacturer still has a future.” Audi was also to receive prismatic cells from Northvolt from the factory in Skellefteå – for its PPE models, for example.

The ‘Premium Platform Electric’, which was developed together with Porsche and is also the basis for the electric Macan, is currently being used by Audi in the Q6 e-tron and A6 e-tron – further models are planned. Unlike the Porsche 718, Audi is planning to use several suppliers for the PPE, including CATL and LG Energy Solution in addition to Northvolt.

Audi also told the newspaper that the current A6-e-tron models are ‘not affected by any delivery problems’. At the moment, therefore, there are no bottlenecks in PPE production at Audi’s main plant in Ingolstadt. In the long term, however, there could be a shortage of batteries if Northvolt fails to deliver the planned capacities. Handelsblatt is therefore already speculating about renegotiations with CATL and LGES: ‘Industry insiders suspect that such renegotiations would be more expensive for Audi than planned.’

Northvolt had already announced after the cancelled BMW order that it would focus more on the production problems and put other projects on the back burner. Even now, a spokesperson emphasises that “everything is currently being subordinated to the successful ramp-up of the battery factory in Skelleftea.”

BMW had cancelled an order worth billions because Northvolt was unable to deliver the agreed quantities at the agreed time. While Porsche and Audi had planned to use the Northvolt cells for future models, BMW wanted to use the prismatic cells from Skelleftea in its current electric series. However, as the Munich-based company is switching to cylindrical cells for its ‘Neue Klasse’ electric cars, a later delivery of the prismatic cells was not of interest and the order was cancelled.

The fact that Northvolt’s production is behind schedule is of course not the only reason for the Swedes’ financial situation. However, the underutilised production costs money, which is not being generated as planned due to the delivery volumes. As the situation at Northvolt’s major shareholders has also worsened, the necessary financing has not materialised.

Even if Northvolt is able to deliver (at least reduced quantities), it is not yet certain that Porsche will be able to realise the planned premiere of the electric 718 successor at the end of next year. As the Handelsblatt has learnt from industry circles. An unspecified ‘component in the drivetrain’ is still causing problems.

handelsblatt.com (in German)