· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Financial Post or enjoy below:
🗞️ Driving the news: Swedish battery start-up Northvolt is struggling to secure funding to ramp up production at its Skellefteå gigafactory, despite having raised over $15 billion
• Faced with delays, job cuts, and scaling down projects, the company’s survival is under pressure as it competes with well-established Asian rivals
• Europe's battery sector, key to its electric vehicle transition, hinges on Northvolt’s success.
🔭 The context: Founded in 2017, Northvolt has secured over $50 billion in orders from European automakers, including Volkswagen and BMW
• However, production delays, intense competition from China, and rising costs have left the company struggling to meet demand and maintain financial stability.
🌍 Why it matters for the planet: Northvolt is vital to Europe’s green energy transition, providing batteries for electric vehicles, which are crucial for reducing carbon emissions
• Failure to scale up threatens Europe’s competitiveness and its ability to reduce reliance on Chinese battery producers
⏭️ What's next: Northvolt’s future depends on raising new funds and increasing production to meet its 2025 targets
• European policymakers and automakers are watching closely, as any collapse could set back Europe’s EV ambitions
💬 One quote: “We in Europe need to get our shit together if we want to have a chance to be competitive going forward,” — Greger Ledung, Swedish Energy Agency
📈 One stat: Northvolt produced less than 1 GWh of batteries in 2023, far below its factory’s capacity of 16 GWh
Click for more news covering the latest on battery tech
