Swedish Deputy Prime Minister Ebba Busch announced on Tuesday that the government has no plans to acquire an ownership stake in Northvolt, the lithium-ion battery manufacturer currently facing financial difficulties.
Busch, who also serves as the Minister for Energy, Business, and Industry, confirmed that state ownership is not being considered as Northvolt grapples with production setbacks, the loss of a key customer, and funding shortages. “To come up with a completely new system that doesn’t exist today, that’s not on the table,” she stated. “To go in and have state ownership in Northvolt, for example, is not on the table.”
Her remarks mirror those of Prime Minister Ulf Kristersson, who in September dismissed the possibility of government investment in Northvolt. The company is reportedly reducing operations and workforce in an effort to remain solvent.
Despite Northvolt’s challenges, Busch emphasized that Sweden’s transition away from fossil fuels remains a top priority. The government anticipates investing over 1,000 billion Swedish crowns (approximately $91 billion) in green industries over the coming decades, leveraging northern Sweden’s access to affordable and clean electricity. “There are huge investments happening in the green transition in Sweden whether or not the Northvolt project gets fully completed or not,” she added.
Acknowledging Northvolt’s significance to Sweden and the European Union, Busch highlighted the global competition in the clean energy sector. “Northvolt is important for Sweden, and it’s important for the whole of the European Union because we are in something of an industrial fight with China and the United States,” she said.
Amid ongoing financial difficulties, Northvolt is reportedly exploring various survival strategies, including potential bankruptcy protection in the United States, according to sources familiar with the matter.
Source: EVMagz
