Europe's largest battery producer is struggling to survive

Northvolt is one of the leaders in Europe's energy transition. It is the largest producer of batteries on the continent, supplying some major car brands. But the future looks bleak.

1,600 jobs abolished in Sweden
Europe's great hope for independence in battery production is struggling to survive after that The company announced it would cut 1,600 jobs And scaling back expansion plans.
We're talking about Northvolt, the "darling" of the European cleantech industry, which has attracted billions in investment from some of the world's largest car manufacturers, banks and governments. Today, with at least one investor questioning his relationship with the company, the future looks bleak.
For policymakers in Brussels, the Swedish company's success was seen as fundamental to Europe's energy security. Developing a European source for batteries would allow the EU to maintain its electric vehicle ambitions without relying on Chinese supplies, at a time when car manufacturers are looking to move away from traditional combustion engines.

Europe's decline
Troubles at Northvolt Reflects the decline in the market for battery manufacturers in Europe. Declining demand, rising costs and technical difficulties, coupled with the massive expansion of Chinese manufacturing, have made profitable, large-scale battery production an almost insurmountable challenge for Western companies.
Launched in 2015 by former Tesla executives, Northvolt opened a factory in northern Sweden to build next-generation batteries for electric cars using clean energy. The company has attracted billions in investment, mostly through debt. At the beginning of this year, it received financing of about $15 billion.
the Volkswagen owns 23% of the companyBut Goldman Sachs and BMW are also investors, and Volvo Cars has signed a partnership to collaborate on research, cell design and production. Northvolt has signed future battery delivery contracts with European automakers, creating a source of future revenue against which it can borrow from other lenders.
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But currently the company is in decline. Technical problems hampered the project in the Arctic. The company was able to produce thousands of batteries, but it did not meet the standards required by car manufacturers and did not reach sufficient quantities.

if BMW has withdrawn orders worth $2 billionAfter the company failed to meet an initial deadline for battery delivery, Volkswagen representatives said they were in close contact with Northvolt to support increased industrial production, while Volvo stated that Northvolt remained part of diversifying its supply chain.
However, Northvolt has already announced that it will cut 1,600 jobs in Sweden and that it will abandon plans to double the size of its plant in Skellefteå. In September, the company announced its intention to build a factory in Canada, receiving about $700 million from local and national governments.
European battery makers now face uncertainty due to competition with Asians, which dominate production, and the survival of Northvolt and other Western battery makers appears to depend on concerted government efforts and/or partnerships with established Asian manufacturers.