Things are going badly for Northvolt, the most important player in the European battery market. On Monday, the company announced a major reorganization, which will result in people losing their jobs. The focus will now be entirely on the gigafactory in Skellefteå, northern Sweden.
Northvolt makes batteries and works with several large companies, including Volkswagen, BMW, Volvo and Scania. It makes lithium-ion cells and sodium-ion cells, among other things. Northvolt’s batteries are used for electric cars and mega batteries that can serve as an alternative to diesel generators that generate electricity.
The expectations of Northvolt are high. Both the business community and governments have already invested more than 10 billion euros in the company. The company is seen as an important player in making Europe less dependent on China in sustainability and the fight against climate change. But things have not been going well for Northvolt lately.
In June, the company lost a mega order from BMW worth 2 billion dollars, because it would not be able to deliver on time. BMW switched to a competitor. In addition, the demand for batteries has been declining for some time. For example, Volvo recently backtracked on its plan to only make electric cars from 2030.
Northvolt seeks buyer for Polish factory
Northvolt will now focus entirely on the Swedish megafactory where it makes batteries. The company is looking for a buyer or partner for a factory in Poland. Other activities that are not directly related to making batteries will be stopped. In addition, the company will re-evaluate whether it still wants to open battery factories in Germany and Canada.
Reuters news agency writes that the problems at Northvolt are causing tensions across the European battery market as a whole. “Northvolt was the nestor of the European battery industry and if the company can’t produce, it shows that Europe will be incredibly dependent on Asia for industrial purposes in the future,” says one analyst. Because the company is stopping the production of cathode material, it will have to get that material from China, among other places, according to anonymous sources. Which was not the intention.
Meanwhile, uncertainty is high in the Swedish Skellefteå. The city is home to a huge number of Northvolt employees, who have come to Sweden from all over the world to make batteries. One resident told the Swedish public broadcaster SVT hoping for a good outcome. On Friday, all staff received a letter to immediately stop all expenditure, writes regional newspaper The northStaff wonders whether their salaries are still being paid.
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Source: www.bright.nl
