Northvolt faces factory closures in Skellefteå amid rising costs and declining electric vehicle market

Parts of Northvolt’s factory in Skellefteå are set to close as the battery manufacturer faces rising costs, production issues, and a declining electric vehicle market. Economic commentator Alexander Norén described the situation as a “make it or break it” moment for Northvolt. He emphasized that if the company can boost production and sell batteries as planned, it may attract new capital, survive, and potentially turn into a success story. However, he warned that if Northvolt fails to demonstrate that it can operate the factory effectively, cost-cutting measures alone will not suffice. The primary plant in Skellefteå must function well to secure further investments from stakeholders, especially Volkswagen. Failing to do so could lead Northvolt into a downward spiral.

The company is currently experiencing a financial crisis, with increasing pressure from creditors. Northvolt has been under scrutiny for its mounting debts and recent billing issues leading to action from collection agencies. The challenges come at a crucial time when the emphasis on green transition remains high, and Northvolt’s ability to capitalize on this trend hangs in the balance. The coming weeks will be pivotal for the company as it seeks to stabilize its operations and reassure investors of its long-term viability.