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Europe's great battery hope Northvolt fights for survival

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By illuminem briefings

· 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

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