Many researchers and journalists tracking Northvolt’s downfall share the view that it was at least partly caused by a global dip in demand for electric vehicles (EVs).
In September Volvo abandoned its target to only produce EVs by 2030, arguing that “customers and markets are moving at different speeds”. Meanwhile China, the market leader in electric batteries, has been able to undercut Northvolt’s prices.
Missing production targets (a key factor in BMW pulling out of a €2bn deal in June), expanding too quickly, and the company’s leadership have also been widely cited as factors fuelling the crisis.
“To build batteries is a very complex process. It takes a lot of capital, it takes time, and they obviously just didn’t have the right personnel running the company,” argues Andreas Cervenka, a business author and economics commentator for Swedish daily Aftonbladet.
At Umeå university, Madeleine Eriksson, a geographer researching the impact of so-called “green industries” says Northvolt presented a “save the world mentality” that impressed investors, media and local politicians.
But this “now-or-never” approach, she argues, glossed over the fact it was a risk-taking start-up that “never finished attracting investment”.
Northvolt did not respond to multiple requests from the BBC to respond to comments about its downfall or future plans.
The firm has hired German Marcus Dangelmaier, from global electronics company TE Connectivity to run Northvolt’s operations in Skellefeå, from January, as it seeks to attract fresh investment.
Northvolt’s co-founder and CEO Peter Carlsson – a former Tesla executive – resigned in November.
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