Northvolt, a prominent EU-backed battery manufacturer based in Sweden, has announced it will cease operations at its Skellefteå megafactory in June. The decision follows the company’s declaration of bankruptcy in March, as stated by bankruptcy trustee Mikael Kubu during a recent staff meeting.
Initially, Northvolt continued production at a reduced capacity to honor existing contracts with vehicle manufacturer Scania. However, the withdrawal of a Volkswagen subsidiary from these agreements has led to the complete shutdown of production lines.
Kubu and trade body Business Sweden “have worked hard to find a buyer”, Swedish energy minister Ebba Busch said in a social media post, but “it will not be possible at this time”.
The closure of the Northvolt factory is expected to have significant repercussions for Skellefteå, the northeastern town housing the megafactory.
“It is … about Sweden’s green industrial credibility and about the EU’s ability to stand on its own two feet in the new geopolitical energy landscape,” Burman said in a press release.
Despite the bankruptcy, Northvolt’s subsidiaries remain operational. Notably, a subsidiary is currently constructing a new plant in Germany, supported by €600 million in state funding. This ongoing project suggests that while the parent company faces challenges, its associated ventures continue to progress under governmental support.
Northvolt was once considered a flagship for the EU’s strategic efforts to enhance domestic battery production, aligning with broader goals of advancing renewable energy and electric mobility. The company’s bankruptcy marks a setback for these ambitions, raising questions about the sustainability and resilience of large-scale battery manufacturing initiatives within the European Union.
The cessation of production at the Skellefteå megafactory underscores the complexities and challenges inherent in the battery industry’s expansion. As the EU grapples with securing its supply chains and fostering competitive manufacturing capabilities, the Northvolt case serves as a critical point of analysis for policymakers and industry stakeholders alike.
Source: Euractiv
