Major European battery maker bankrupt: Europe remains dependent on Chinese batteries for now

Money problems and other woes

Northvolt was seen as a major player in Europe’s green energy plans. Big names like Volkswagen and Goldman Sachs pumped money into the company. In October 2023, Northvolt even raised 15 billion euros from investors. But despite all those billions, production did not really take off.

High costs, supply chain problems and a troubled global economy did not make things easier. Customers began to question whether Northvolt could deliver on its promises. BMW even withdrew a $2 billion order in June 2023 simply because Northvolt could not deliver. As a last resort, the company tried to file for creditor protection in the U.S. in November 2023, but now the situation in Sweden has become untenable. The company has been declared bankrupt.

A bummer for the European auto industry

For many European manufacturers, this is a major setback. Brands like Porsche and Scania had big plans for Northvolt batteries. Porsche has now taken matters into its own hands and taken a majority stake in German battery manufacturer Varta. Scania has also already arranged for a new supplier.

What does this mean for Europe?

Europe’s desire to be less dependent on Chinese batteries comes into question with the bankruptcy. Northvolt was supposed to be a counterpart to battery giants such as CATL and BYD. The European Union wants to be less dependent on countries like China, but that is proving easier said than done. So for now, most European EVs still have a Chinese battery in the bottom.

Also see: 1,000 km range and 5 minutes fast charging: Solid-state battery is fast approaching!

Also read: 1,000 km range and 5 minutes fast charging: solid-state battery is fast approaching! – AutoRAI TV