Northvolt faces production delays and potential layoffs in Skellefteå amid financial struggles

Parts of Northvolt’s main factory in Skellefteå will be closed due to the company’s serious financial situation. Battery production is moving slowly, and this year Northvolt lost a significant order from BMW worth one billion euros. As a result, layoffs may be necessary, and employees have been notified that expense reimbursements and travel will be halted.

The largest owner of Northvolt is Volkswagen, which has expressed its full support for the Swedish battery manufacturer. However, the German automotive giant has not yet provided additional capital. Recently, the German government granted substantial state aid for building Northvolt’s factory in Germany.

In response to a question about whether Sweden could offer similar support, the Swedish Minister of Energy, Ebba Busch, pointed to Volkswagen’s financial struggles. She stated that Swedish taxpayer money could not be used to prop up a single company facing challenges due to its main owner’s financial issues.

Kristina Lagerström, an economic reporter, interpreted Busch’s comments as suggesting a hope for a new main owner who might receive some assistance from the state, while also indicating that it may be difficult for Volkswagen to provide support.

Busch reaffirmed her backing for Northvolt, emphasizing the company’s significance for the entire European market. She mentioned that many European countries have a vested interest in Northvolt’s success, acknowledging the tough geopolitical landscape and competition between Europe, the U.S., and particularly China, which engages in unfair business practices.

Northvolt’s ongoing challenges have been highlighted in various reports, further stressing the precarious situation for the battery producer.