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.
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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.
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