A Dream of Independent European Energy Dies with Northvolt

Once a symbol of hope for Europe in the field of electric vehicle batteries, Northvolt goes bankrupt

Founded in 2016, Northvolt aimed to compete with Asian leaders through innovative and sustainable solutions, embodying the promise of European industrial autonomy.

Unfortunately, this Swedish company was unable to meet the financial conditions necessary to continue in its current form. After months of difficulties, the filing for bankruptcy in Sweden marks a definitive halt. Its 5,000 employees now face an uncertain future, although the company assures that it is working with authorities and unions to provide support and information.

Despite over $10 billion in funding from major investors such as Volkswagen and Goldman Sachs, Northvolt has been hit by insurmountable challenges: rising capital costs, supply chain disruptions caused by geopolitical instability, and sudden changes in market demand. These obstacles have been compounded by internal difficulties, including delays in ramping up production and managing multiple factory projects simultaneously in Sweden, Germany, and the United States.

The company, whose slogan was “making oil obsolete,” had grand ambitions. Its gigafactory in Skellefteå, in northern Sweden, was supposed to produce hundreds of thousands of batteries using green energy. But accumulated delays and financial difficulties led Northvolt to suspend its expansion last year, then to cut 1,600 jobs. Despite extensive efforts to find a solution, the company could not avoid this tragic outcome.

The story of Northvolt highlights the importance of solid support and a pragmatic vision to turn equally beautiful and ambitious ideals into reality. Europe loses here much more than a company: it loses a dream of autonomy and sustainability.

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