Northvolt

About Northvolt

Northvolt, the Swedish battery manufacturer, faced severe financial difficulties in 2024. Northvolt had raised over 13 billion in funding and was backed by Volkswagen, BMW, and Goldman Sachs. Production delays, quality issues, and cost overruns plagued the factory in Skelleftea. BMW cancelled a 2 billion order. CEO Peter Carlsson stepped down. Northvolt sought Chapter 11 protection in the US in November 2024 with approximately 5.8 billion in debt. The company had approximately 6,500 employees. The case highlighted the difficulty of scaling battery manufacturing in Europe. Chinese battery manufacturers had a significant head start in technology and cost. The Swedish government declined to provide emergency funding. The case illustrates the challenges of European industrial policy in clean energy.