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How Europe’s big hope in EV batteries came unstuck

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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 Fortune or enjoy below:

🗞️ Driving the news: Europe’s hopes to lead in electric vehicle (EV) batteries have hit a major setback as Northvolt AB, once seen as a challenger to Chinese dominance, struggles with debt, operational blunders, and production delays
After posting significant losses, the company has cut jobs and scrapped major projects to avoid collapse. Amid these challenges, global battery overcapacity and fierce price competition from China further dampen prospects

🔭 The context: Northvolt had ambitious plans to rival Chinese giants like CATL, rapidly expanding with new factories and complex battery technology
However, operational missteps and quality issues have hampered progress, with major clients like BMW and Scania pulling out
This comes at a time when battery demand forecasts are overestimated, leading to market saturation and falling prices

🌍 Why it matters for the planet: The setbacks at Northvolt jeopardize Europe’s ambitions to be a leader in green technologies critical for the low-carbon economy
A strong EV battery sector is essential for reducing emissions in the transport sector and achieving the EU’s Net Zero Industry goals

⏭️ What's next: If Northvolt fails, Europe may need to rely more on Chinese suppliers, undermining efforts to build a homegrown clean-tech industry
The broader European battery sector faces uncertainty as the market adjusts to slower EV sales and reduced government subsidies

💬 One quote: “Chief Executive Officer Peter Carlsson has blamed the state of the wider industry,” noting the global overcapacity that has driven down prices

📈 One stat: Northvolt’s losses tripled in 2023, reaching $1.03 billion

Click for more news covering the latest on battery tech

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