Slate Money From Behind the Money: Why Northvolt Failed to Become Europe’s Battery Champion
Dec 23, 2024
Richard Milne, Nordic and Baltic bureau chief for the Financial Times, shares insights on Northvolt, the ambitious Swedish battery startup that recently filed for bankruptcy. He discusses Northvolt's meteoric rise and the fierce competition from Asian manufacturers that led to its fall. The challenges of establishing a local supply chain and the impact of management issues and financial missteps are examined. Milne also reflects on the broader implications for Europe’s battery industry and electric vehicle market in the wake of Northvolt's collapse.
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Northvolt's Beginnings
- Richard Milne discovered Northvolt, then SGF Energy, through a contact.
- Initially intrigued by the company's pitch to become Europe's first gigafactory, Milne published the first article about them.
Europe's Battery Dilemma
- The European car industry, vital to the European economy, faced a critical transition to electric vehicles.
- Asian companies dominated the battery market, making Europe reliant on them.
Northvolt's Funding Journey
- Securing financing was a major challenge for Northvolt's ambitious $4 billion gigafactory.
- Their impressive roster of investors included financial giants and future customers like Volkswagen and BMW.