How Europe’s battery hope has become a symbol of the EV bust
Northvolt AB was supposed to power Europe’s response to the likes of Tesla Inc. and China’s fast-growing electric vehicle makers. Instead, the Swedish battery company is fighting to stay afloat.
As it faces a crushing liquidity crunch, the company’s creditors will meet Friday to decide on freeing up funds critical to its survival. On Thursday, Harald Mix, Northvolt’s founder and owner of a 7.2% stake, said he plans to provide new capital to the company, pointing to the “important role” it plays in European competitiveness.
Burning cash as it struggles to deliver the batteries it promised customers, Northvolt this week said it’s shedding a fifth of its global staff and suspending the expansion of its main factory in northern Sweden. With Europe’s battery boom turning to bust, more pain may be in the offing.
“There will not be big enough demand to meet supply and Northvolt may very well be the first casualty of the market correction currently underway,” said Fredrik Erixon, director at the Brussels-based European Centre for International Political Economy.
At stake is Europe’s effort to build a critical industry in a global marketplace dominated by Chinese rivals like Contemporary Amperex Technology Co and BYD Co. that are selling batteries and EVs at unbeatable prices. Northvolt’s woes also throw into question Europe’s ambitious push to build a self-reliant green economy.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, Developer and Lead Instructor
Art
