Northvolt

Northvolt AB, founded in 2015 by former Tesla executives, is a Swedish manufacturer of sustainable lithium-ion batteries for electric vehicles and energy storage. Using a vertically integrated process, Northvolt aims to reduce carbon footprints by 90% and advances technologies like sodium-ion and lithium-metal cells.

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Northvolt AB, established in 2015 by former Tesla executives Peter Carlsson and Paolo Cerruti, is a Swedish battery manufacturer and developer. The company specializes in producing sustainable lithium-ion batteries, primarily serving the electric vehicle sector and energy storage markets. With over 6,500 employees representing more than 100 nationalities, Northvolt aims to create batteries with minimal environmental impact, targeting a 90% reduction in carbon footprint compared to conventional battery production methods.

The company’s approach integrates the entire battery manufacturing process, from raw material processing to recycling, ensuring quality control and environmental sustainability throughout the production cycle. This vertically integrated strategy enables Northvolt to maintain high standards while optimizing costs and reducing environmental impact.

Battery Technology

Northvolt develops and manufactures three main battery technologies. Their primary focus is on lithium-ion batteries, designed specifically for electric vehicles and industrial applications. These cells are produced using renewable energy sources and incorporate advanced materials to maximize performance and longevity.

The company has also made significant progress in sodium-ion battery development, introducing a technology that eliminates the need for critical minerals such as cobalt and nickel. This innovation uses Prussian White for the cathode and biobased hard carbon for the anode, making it particularly suitable for energy storage systems and potentially future electric vehicle applications.

Additionally, Northvolt produces lithium-metal cells at their Västerås facility in Sweden. These batteries offer higher energy density, making them particularly suitable for aviation and high-performance vehicle applications. The manufacturing process incorporates recycled materials, advancing toward their goal of using 50% recycled materials in production by 2030.

Recent Projects

Northvolt is facing significant challenges, and its future is uncertain.

In November 2024, Northvolt filed for Chapter 11 bankruptcy protection in the U.S. with debts around $5.8 billion. The company is now restructuring, with plans to complete this process by the first quarter of 2025.
Despite its financial troubles, shareholders voted in January 2025 to keep operations running during the restructuring, enabling the company to focus on ramping up production and executing its transformation plan.
In February 2025, Northvolt announced job reductions and a scale-back of operations to concentrate on its main gigafactory in Sweden. Additionally, its cathode active material facility in Skellefteå was placed into “care and maintenance.”
As part of a broader settlement, Volvo Cars took full control of the Novo Energy battery joint venture, effectively absorbing Northvolt’s 50% stake without payment. Meanwhile, plans for the Gothenburg battery cell factory, originally set for 2026, have become uncertain, with Volvo considering a sale or repurposing of the nearly completed facility.

Investors

Northvolt has attracted substantial investment from major automotive and financial institutions. Volkswagen Group invested €1.4 billion across multiple funding rounds, while Goldman Sachs maintains a significant stake. Other notable investors include BlackRock, the Canada Pension Plan Investment Board, and Swedish pension funds through 4 to 1 Investments. The company has also received backing from BMW Group, OMERS, and various other institutional investors.