WR1 General Discussion, page-32916

https://www.ft.com/content/14364789-bd61-4205-8e1d-1f21e6a136e1

Swedish PM rules out government rescue of troubled Northvolt

Battery start-up struggles to gain backing for latest fundraising amid Europe’s slowing take-up of electric vehicles

Sweden’s government has ruled out a financial rescue of Northvolt as the country’s green battery start-up fights for survival.

Ulf Kristersson, the centre-right prime minister, said on Monday that Sweden wanted to position itself as a leading country for the green transition with new companies such as Northvolt and H2 Green Steel supplying established groups such as Volvo Cars and Atlas Copco.

The Swedish battery group is Europe’s great hope of fighting back against the likes of CATL and BYD of China, Panasonic of Japan, and Tesla of the US in leading the battery sector.

Despite becoming the first company in Europe to produce a cell from a homegrown gigafactory in late 2021 at its factory in Skellefteå just below the Arctic Circle, Northvolt has grappled with scaling up its production.

The lossmaking group is desperately seeking to raise fresh capital as it focuses on its first gigafactory. It will cut jobs, close down part of the Skellefteå factory and examine delays for three other planned plants in Sweden, Germany and Canada.