Plans for a SEK 13 billion ($1.3 billion) battery anode factory in Timrå, located north of Sundsvall, Sweden, have been entirely canceled, according to Dagens Industri. The project, led by Shanghai Putailai (PTL), a China-owned company, was expected to create approximately 1,900 people. Swedish battery manufacturer Northvolt was among the potential customers for the facility.
The cancellation came after Sweden’s Inspectorate of Strategic Products (ISP) rejected PTL’s application unless the company agreed to specific conditions. In response, PTL announced that the project would not move forward. Dr. Yu Han, PTL’s chief representative in Europe, stated in a press release, “The business conditions for the investment are unfortunately no longer in place.”
Initially announced in May 2023, the project aimed to establish a production capacity of 100,000 tons annually for anode materials through PTL’s subsidiary, Zichen Technology Sweden AB. The first phase was planned to reach a capacity of 50,000 tons by 2025, intending to strengthen PTL’s position within the European battery supply chain.
In December 2024, the Swedish government introduced conditions related to Zichen Sweden’s ownership, management structure, intellectual property rights, and regulatory arrangements. PTL deemed these requirements commercially unfeasible and proposed alternative arrangements, which were subsequently rejected by the government.
PTL expressed dissatisfaction with the Swedish government’s stance, describing the control-related demands as “unreasonable” and inconsistent with global trade norms. The company is currently exploring legal options to appeal the decision and is in ongoing discussions with Swedish authorities to identify alternative pathways for the project.
This development highlights the increasing challenges that Chinese investors encounter due to stricter national security and investment screening policies across Europe. The termination of PTL’s project underscores the growing tension between Europe’s efforts to minimize dependence on Chinese supply chains and the need for Chinese expertise and capacity in the battery materials sector.
Despite this setback, PTL remains dedicated to its international expansion goals and is reportedly assessing other potential investment locations to support its global growth strategy.
Source: ScandAsia
