Summarised by Centrist

Northvolt, once Europe’s flagship battery producer, has filed for bankruptcy protection, leaving the continent further behind China in the global race for electric vehicle (EV) dominance. 

Despite USD$50b in future orders and producing approximately 60,000 batteries weekly, the Swedish-based company has nearly USD$6b in debt. Critics blame the collapse on waning EV demand, mismanagement, and over-reliance on Chinese technology, as well as Europe’s failure to support its fledgling battery industry effectively.

Northvolt’s CEO, Peter Carlsson, has resigned, admitting the company was “overambitious.” Northvolt had expanded aggressively during the pandemic, planning gigafactories across Europe and North America. However, EV sales slumped globally in 2023 as inflation and hesitant buyers cut demand. 

Volkswagen, a major Northvolt customer and shareholder, recently announced the closure of three German plants, while Chinese competitors flooded the market with cheaper EVs powered by their own batteries. 

Former Aston Martin CEO Andy Palmer noted, “The biggest issue is that batteries are not easy to make, and Northvolt haven’t satisfied the supply demands of their customers – that is a management issue.”

Simon Moores of Benchmark Mineral Intelligence warned, “The pendulum of industrial battery power has just swung east towards China.” 

Read more over at The Daily Sceptic

_{Image: Spisen – Own work, CC BY-SA 4.0}