Friday, August 22, 2025

No Government Bailout for Northvolt, Says Swedish Prime Minister

Northvolt will need to figure its future out on its own, it appears. Swedish Prime Minister Ulf Kristersson said that the government will not acquire a stake in the battery maker. Kristersson’s comments follow Northvolt’s recent decision to reduce operations and cut jobs, raising concerns about Europe’s domestic electric vehicle battery industry.

The Prime Minister said that while Sweden supports new green transition technologies, state ownership of Northvolt is not an option. He placed responsibility for the company’s development squarely on its owners, including Volkswagen.

“We don’t involve ourselves in the business plans of individual companies but we do want to be a good place for this kind of industry,” Kristersson told the press on Monday, responding to whether the state would consider a potential financial rescue of the company.

Northvolt has been at the forefront of European efforts to establish a domestic battery production industry. The company recently announced the suspension of parts of its production at its Swedish gigafactory and delays in planned construction of facilities in Germany, Canada, and southern Sweden.

Also read: Swedish Battery Maker Northvolt Slows C$7 Billion Canadian Project

This scaling back of Northvolt’s rapid expansion plans reflects broader challenges in the electric vehicle market. Despite significant investments in battery production across Europe, growth in EV demand has been slower than some industry projections. 

Additionally, the sector faces stiff competition from China, which currently dominates global battery cell production with an 85% market share, according to International Energy Agency data.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

LG Electronics Partners with Canadian-Based Magna International to Create Electric Car Components Business

As an increasing amount of attention continues to be diverted towards the EV market, numerous...

Sunday, December 27, 2020, 11:37:00 AM

Biden to Announce Tighter Fuel-Efficiency Standards for Automakers Just 3 Months After Previous Proposal

The Biden administration is set to present a new proposal that will mandate automakers to...

Friday, July 28, 2023, 12:07:00 PM

Rising Insurance Prices Challenge Electric Vehicle Affordability

Auto insurers have significantly increased prices for electric vehicle (EV) insurance in the past year,...

Monday, October 30, 2023, 11:01:00 AM

Tesla: Canaccord Lowers Target To $812 Off 4680 Cell Delay

Tesla Inc (NASDAQ: TSLA) founder Elon Musk has been in the news quite a bit...

Monday, June 14, 2021, 05:38:00 PM

Ford Allocates $3.2 Billion Towards All-Electric Versions Of Transit Van, F-150 Pickup Truck

It appears that the EV market is heating up, as more and more American auto...

Tuesday, November 10, 2020, 01:57:00 PM